Well off property investors from around the world are not put off buying property in the UK because of Brexit, new research suggests.
Indeed some 85% are currently investing in British property with one in four saying they are doing so because of Brexit, a global survey for UK property developer Seven Capital has found.
Some 55% of those polled said they live in the UK, 17% in Hong Kong, 17% in Dubai and 11% in South Africa.
Among those from the UK more than 30% identified as currently investing in property with all of those confirming they invest in UK property and 23% cited Brexit as the catalyst for them to invest.
Asked how strongly they believe the UK’s property market will be in the next 18 months, some 55% believe the market will be good to very strong, with that figure rising to 64% in three to five years’ time.
These are encouraging statistics for the UK property market, during a period of uncertainty and generally negative speculation over what Brexit will bring, according to Andy Foote, director at SevenCapital.
‘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 pointed out that other factors are at play such as a chronic undersupply which means there is an ever growing demand for homes in the UK, both rented and owned, and that is not something that is going to change with Brexit.
Also, property isn’t seen as a quick purchase or 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.