The uncertainty over Brexit has meant a lot of investors have held back their funds until they know what the future for the country will look like. But this doesn’t mean the health of real-estate investment in the UK is in a bad shape, in many respects short term pain may lead into long term gain.
There is an expectation in the equity market that cash will flow into the country once Brexit is resolved, no matter if we leave with or without a deal. Once the future is certain – and the pound is stable – the money will flow.
The uptick in investment may not happen the day after we leave (which is supposedly October 31 but who knows at this point). Rather it will start once the people in charge of the money have had time to take in the new reality, plan their strategy and find suitable investments the future for the UK investment market looks good.
Even with the uncertainty around Brexit, for international investors the UK property market is a safe haven in an uncertain world. However, one mistake investors from other countries might make is to assume the best place to pour their money into is London.
The capital has many world leading industries that attract high earners which has created an endless demand for housing. However, this means prices are extremely high and return yields could be lower than expected.
The government has been keen to promote everywhere but the capital and many of the UK’s other major cities have started to become more lucrative.
The BBC has moved to Salford, Liverpool has become a centre of culture and universities across the North West have been punching above their weight making them desirable places for ambitious students.
Several studies recently have found Merseyside offers the best return on investments in property as both renters and landlords are beginning to recognise the opportunities the region has to offer.
A study carried out by One & Only Pro, found all of the top ten places for investment were in the north, with Liverpool offering the best return on investment.
So, while we wait and see what happens with Brexit, it might be wise for any property investor to start thinking about getting out of London and looking elsewhere for the best yields, particularly in the North West.