How has BREXIT affected the UK property market?

uk-property-market

United Kingdom, also known as Britain, is located in Western Europe and is the fifth largest economy in the world.

The UK property market still an excellent place to invest in as it has the largest and most developed property market in the world, with endless options. The UK’s house prices are boosted by immigration, low-interest rates, and London’s stellar growth as the finance capital of the world.

A recent increase of stamp duty is dampening this red hot market and it will likely result in lower property sales. Moreover, there is a shortage of available properties as construction remains weak and the shortage drives up prices. Brexit has caused some investors to take a wait-and-see posture as negotiations with the EU are currently under way — although in June 2017 alone, over US$4 billion in transactions have been recorded — typically a slow month.

While the Greater London recorded the highest prices of around US$1,707 per square foot (sq. ft.), it has low rental yields ranging from 2.61% to 3.5%.

Properties in Manchester cost US$276 per sq. ft. with higher rental yields ranging from 4.9% to 6.49%. Meanwhile, residential prices in Edinburgh are around US$373 per sq. ft. with rental yields at 5%. For investors, higher yields can be obtained from accommodation targeting students as there is a high demand but there is a shortage of rentals.

Non-Brits may find the properties quite expensive yet the demand from foreign investors remained high. There are no restrictions for non-Brits’ ownership of properties in UK. Non-Brits are able to purchase in UK property market and most nationalities can get investment loans although there are limited numbers of banks offering them. UK laws are complicated and transaction costs may include Stamp Duty and various other ancillary charges included in purchasing a property.  

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