As we draw closer and closer to the dreaded Brexit finale, investors are wondering how the property market will suffer. Some are holding back their capital in order to wait out the negotiations while many are still investing into projects with fixed income rates and assured rental returns. Nobody knows how the market will be affected while property experts are torn in their predictions.
“Whether you voted to stay or leave the EU, there’s no denying that the uncertainty around when the UK will leave the EU, and the terms under which it may happen, is causing property market jitters,” says Which? magazine.
The Royal Institute of Chartered Surveyors’ recent market survey reported that 77% of respondents say Brexit uncertainty is the biggest challenge in the property market right now. However, the February UK Cities House Price Index from Zoopla suggested that the property market is going strong, regardless of any uncertainty.
The report shows that, for the first time since 2015, every city in the index saw positive property price growth for the month of February.
Liverpool is leading the march for the Northern Powerhouse with an increase in property growth of +1.2% over February 2018 while Newcastle showed the same increase. London is almost flat-lined while other Southern cities such as Portsmouth (-3.5%), Bristol (-1.2%) and Bournemouth (-1.5%) all saw a slow-down in property growth.
Liverpool also has the highest affordability in the UK index with the average property price set at £121,100, compared to London at £481,800.
We can only wait and see how the property market will react to the final Brexit outcome but at the moment, it looks like the property market in general isn’t too worried. You can download our guide to Brexit by clicking here.