With industry groups and experts painting a negative picture about Brexit, it is no wonder business owners are feeling cautious. At the start of each month, economists make predictions for the path ahead, but the majority is proven wrong. The post-referendum recession hasn’t happened. Consumer spending hasn’t slipped. The global growth and strong Eurozone have negated immediate fears on the British manufacturing industry.
With continued lack of clarity on Brexit, a large number of buyers are still holding off from transacting.
But let's look at the facts professional investors should consider when considering UK residential property market:
It is important to note that even regardless of some volatility on the real estate market, the value of real estate in London usually doubles every ten years.
Average house prices, January 1995 to November 2018
Source: House Prices Report (HomeCo Internet Property Ltd)
Huge demand for rented property because of the several reasons:
- People in the UK are living longer than before. In average until 81 y.o.
- In many areas in the UK and especially in London Affordability ratio is very high, thus people just can’t buy properties.
Source: Office for National Statistics
Not Building enough new homes
In a new assessment of housing need, Sadiq Khan said the pace of construction should increase from 29,000 homes a year to 66,000, adding that 65% of these homes needed to be affordable, far higher than the current rate of 38%.
Based on all of these factors, we can conclude that high demand for good quality rental properties and shortage in supply of specific type of residential properties are the main guarantors of the attractiveness and profitability of the London residential market longterm.
If you want to know more how we helped many foreign investors to build their London residential property portfolios, contact UK Property Advisors on +44 (0) 755 310 9657. We are a reliable partner and an expert in residential real estate investments in London.