Housing market to remain strong post-Brexit
New research from one of the UK’s biggest housebuilders has demonstrated an increased confidence in the property market following on from last month’s Brexit news.
The positive forecast from the report combines several different factors, one of the main ones being the increase in the number of banks’ lending again, which has resulted in lower rates and a much more competitive market. The growing support from the government’s Help to Buy scheme is also predicted to have boosted the market in recent months.
The chief executive of the housebuilding company claimed that the “fundamentals are strong for housing” in the current climate and that they were already “ahead of expectations” in terms of their housebuilding quota for the month of June. In fact, the housebuilder completed a record figure of 17,319 homes in the last month, an increase of 5% when compared to the previous year.
The data quashed any uncertainty brought about by the RICS report published last week, which stated that buyer interest and future house sales were expected to fall following on from the UK referendum result – mainly in London and the surrounding areas. The housebuilder’s report did state it had noticed a slowdown market-wise in the capital and that the immediate impacts of Brexit were unclear on the property front. However the company has contingency plans in place to reduce risk. This includes “reassessing land approvals, particularly over land it is considering buying as it balances capital expenditure and commitments with its income”. Plus, with 95% of the homes built outside of London (valued at £600,000 or less), it creates even less concern for them.
Graham Davidson, managing director of Sequre Property Investment, comments on the post-Brexit effect on property:
“It is important to remember that much of this price contraction highlighted by RICS is in London and the south, where confidence and prices were already declining following years of unsustainable growth.
“There is life outside of these areas, such as in the north where we have actually seen investor enquiries increase by 5% since 23rd June. Investors are more concerned with the volatility of stocks and shares and this has resulted in bricks and mortar remaining the safest investment product. The rental market, an increasingly important sector, also stands to benefit from a weaker sales market, so it is business as usual for many investors seeking high yields and long term capital growth.”
Buy to let is still the number one low-risk investment type in the UK. If you’re interested in purchasing a property for investment this year, speak to the Sequre team today. We source buy to let property across the UK and specialise in negotiating genuine discounts so our investors get instant equity from day one. To find out more, call us on 0800 011 2277.