New research suggests that Brexit is not deterring well off overseas property investors from buying property in the UK.
In fact, a global survey for UK property developer Seven Capital has found that one in four international property investors are currently attracted to the UK because of Brexit.
Some 55% of respondents said they live in the UK, 17% in Hong Kong, 17% in Dubai and 11% in South Africa – and 23% of these cited Brexit as a key reason for wanting to invest in UK property.
Over half of those surveyed believe that any post-Brexit turbulence will be relatively short-lived, recovering to a strong position within 18 months, while 64% believe that the market may take three to five years to recover, but agree that it will eventually return to full strength.
Andy Foote, director at Seven Capital, says that this level of confidence in the UK property market bodes well, and is reason for optimism during the current period of uncertainty and general negativity.
‘These figures demonstrate that people generally recognise that there are bigger factors to consider over Brexit when it comes to the overall trends in the UK property market. Realistically, it’s the fear and the perception of Brexit that will have any effect, rather than the physical act of leaving the European Union,’ said Foote.
‘Ultimately, if the market were to take a dip after Brexit, seasoned investors will know that this would more likely be a catalyst for the inevitable swing back. The property market is a prime example of well-known cyclical patterns, growing through recovery and emerging stronger than previous peaks. In other words, if it takes a dip, as it did 10 years ago, it will recover and come back stronger,’ he explained.
He also suggested that Brexit will not alter the lack of housing supply which has kept demand high for both rented and owned homes in the UK in recent years.
Additionally, he points out that property often represents a long-term investment. ‘If you’re looking to buy a home, the chances are you’re not going to be thinking about selling up again in less than five to 10 years’ time, and if you’re a property investor, you’re likely to be looking for long term gains from it. Either way and dip or no dip, the price of your property, providing you did your research properly before buying, is likely to appreciate in the long run,’ he added.