At a time when post-Brexit uncertainty and lack of clarity are very much key topics of discussion throughout the media, its only to be expected that many investors and would-be investors are having reservations about portfolio expansion. However, this lack of confidence may well be in vain.
According to real estate giants JLL, Britain’s post-Brexit property market and economy in general will remain far more robust in the short to medium-term, and will grow far more rapidly in the medium to long-term than the media and many hesitant investors may have initially thought. Overall, JLL have forecast the following growth figures for the UK property market:
These forecasts are all to do with short-term market correction and confidence in a stable government. In terms of market correction, the predicted drop in demand will contribute towards the short-term mitigation of much of the UK’s issues of undersupply. As a result of the fall in demand, prices may slightly decrease before confidence returns to the market around 2019-2020. Of course, there is no guarantee of a fall in prices, but it is likely that buying power may increase for the more bullish investors looking for better value for money.
What is far more likely than a significant fall in prices in the short-term, is a significant rise in prices in the long-term. With the return of investor confidence and assuming that JLL’s growth forecasts become a reality, it would be expected that prices would increase accordingly.
The message to take away here is that despite negative coverage, Britain’s post-Brexit property market is likely to be far more resilient than many anticipate. In order to profit from these events in both the medium and long-run in terms of both rental yield and capital gain, 2017 is a fantastic time to be investing in buy to let property – should you be able to shoulder the potential marginal short-term risk that comes with that.