How Does Brexit Affect UK Property?

Since Brexit was announced in 2016, the UK pound sterling has had a rough time matching up to the US dollar and other key currencies.  And with the UK’s exit from the European Union looming (currently set on 31 October 2019), further volatility could occur.

From a UK property perspective, the market has largely been slow, at least on the surface level. Transactions of high-end London homes reached a decade low in 2018.

It seems that many buyers are playing the wait-and-see game; waiting for the knock-on effects of Brexit, and seeing if UK property is still worth investing in after that. But does that mean you should adopt this “herd mentality”, and simply follow what so many others are doing? The answer is not as simple as it seems…

Crisis Analysis - The Brexit Conundrum

When calamity strikes, the market fears the worst. And prices start to plummet.

That’s exactly what’s happening to the UK property market now.

In times of crises like Brexit, you as an investor/buyer can react in 3 different ways:

  1. Get flustered, panic sell
  2. Play it safe, wait and see
  3. Keep a clear head, take advantage of the numerous opportunities available

Needless to say, the 3rd option is the ideal one. And there are opportunities aplenty for savvy investors to cherry-pick if you know where to look.

According to Adrian Lim, Head of International Sales at One Global Property Services, there’s no better time to invest in UK property:

“If you look back at previous financial crises, you’ll notice that even though majority of the people are frozen with inaction, the savvy investors take full advantage of dropping prices to beef up their property portfolios at a discount.

Brexit presents the same unique opportunity, but not for long. Because when the market eventually recovers, the “firesale” will be over, and the chance will be lost for good. So take action quickly!”

For example, Ken Griffin, founder of the American hedge fund Citadel, recently bought a home near Buckingham Palace for £95m, paying £30m less than the property’s pre-Brexit asking price.

However, this doesn’t mean that every UK property is worth buying now. Depending on market conditions and trends, some properties are better left untouched during these uncertain times.

In other words, investing in a UK property at the height of Brexit fever is a potentially high-rewarding purchase.

Buying the right property can net you massive discounts with lots of room for capital appreciation when the market recovers.

On the flip side, buying the wrong property will be throwing your hard-earned money down the drain.

So the key question is:

How Do You Identify The Right UK Property To Purchase?

Just like almost every other property market, location is key to an undervalued purchase.

By analyzing critical location trends like tourism, industrialism, education and commercial factors, the intrinsic value of a property can be determined with relative ease.

The Brexit factor does make things a little more complicated, especially during the research process.

However, property fundamentals still apply, Brexit or not.

The slight complication comes in the form of keeping yourself up-to-date with real-time information, so you can make the best purchase decision possible.

As most of you reading this are based in Asia, it may not be that easy to gain first-hand updates on Brexit and property-related news in the UK.

Thankfully, our team at One Global Property Services is here to help.

With extensive contacts in the UK property market and other related industries, we keep our clients updated regarding any news, progress and developments that could impact their property purchases.

In fact, our recent UK property exhibitions were very well-received by Singaporean investors!

Bottom-Line: You Should Only Buy UK Property With 100% Certainty

Actually, waiting and seeing may not be a bad strategy at this time. It’s better than buying the wrong property of course!

You should not be taking action without all the relevant information at your fingertips. Hence, wait and see is the next best thing you can do.

But if you like to seize this window of opportunity and “profit from the panic”, let us help.

One Global Property Services is the region’s leading authority on UK property, and other key property markets around the world.

We can provide you with all the facts, resources and education required to emerge from Brexit with a high gain UK property at an undervalued price.

Simply fill in your details and query below, and we’ll get back to you very shortly.

Talk soon!

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