Uncertainty seems to be the only certainty post-Brexit; the pound has fallen significantly since the vote in June and the FTSE 100 fell, only to recoup losses just 3 days later.
London properties have historically been a sound investment but investors’ faith has been tested by the current instability. However, analysis shows that they still present a sound investment and the current climate actually offers investors a number of opportunities.
Favourable Exchange Rates for Overseas Investors
While property purchases have seen a decrease since the vote, overseas investors are making the most of the cheap pound to buy higher-value properties for their money. Buying in Yen, Euros, or Dollars means that investors can make the most of the pound’s 30-year low.
As a result, the UK is seeing even greater investment from China, the Middle East, Italy, Spain, and Russia. Buyers from the Eurozone gained a discount of around €40,000 on the average London property. Prior to the vote, the average London house sold for around €620,100, but now the price is closer to €579,200.
Is London Still The Place to Invest?
Investors like to add London properties to their portfolio because it provides a reliable income stream in an area that it relatively illiquid, even with commercial properties.
None of the features that made London properties attractive have changed following the vote and if investors have an eye on the long-term, they can certainly benefit from the current opportunities offered by both the low pound and short-term uncertainty.
Long-term, property is still one of the best performing investments in its asset class. London has high demand for domestic properties and low supply, which has not been affected by the Brexit vote.
Investors may even see an increase in rental yields as higher mortgage requirements and more careful lending pushes more Londoners towards renting rather than buying.
Adam Roberts Consultancy offers a range of property investment opportunities, both for residential and commercial buyers. We can recommend properties based on your preferred budget and offer locations with the maximum potential for rental income and capital growth.Tags: brexit, commercial property, GBP value, london property, property investment, residential property
Categorised in: News
This post was written by Dennis Adam