31st January 2023 will mark three years since the UK left the European Union. In the face of continued economic uncertainty and a rapidly changing global landscape (not to mention a global pandemic), the UK property market has continued to show its resilience.
Since Brexit, the UK property market has remained strong throughout the UK, with house prices continuing to rise despite the uncertainty that the referendum result caused. ”The government has routinely showed its willingness to support the industry through policies – help to buy schemes, stamp duty holidays, easing of planning permissions – giving our clients and us the security that the UK property market will continue to be supported as a solid long-term investment for worldwide investors.”
The rental market has also remained buoyant, with landlords able to capitalise on the strength of the market. The number of rental properties has grown steadily over the last three years, with demand far outstripping supply in many areas- which is currently a well-documented topic of discussion.
Is the UK still a good investment for international buyers?
The United Kingdom has been a desirable investment option for many years prior to Brexit. The UK has been an attractive investment opportunity for foreign buyers since long before Brexit. Now, three years after leaving the EU, it continues to be a leader in asset classes for long-term investments.
The UK remains a major player in the global economy, and its economy is still growing.
The UK’s strong fundamentals, including its highly educated workforce, world-class infrastructure, and well-developed legal system, remain attractive to foreign investors.
The UK’s financial services sector has remained one of the world’s strongest.
Financial services is the UK’s biggest export- at £74.2bn with its banking sector among the world’s strongest and the London Stock Exchange being the largest in Europe. This sector was one of the greatest concerns for commentators. However, all of the large institutions have remained in the UK – including ‘the world bank’: HSBC, showing their support for the UK and London in particular.
The UK’s real estate sector continues to be attractive to international buyers.
London is one of the world’s leading cities and remains a key centre for global business. Property prices in London have continued to rise since Brexit, and the UK’s real estate market remains a safe and secure investment.
What is the availability of mortgage finance for local and overseas borrowers?
Immediately after Brexit, lenders pulled out of the market for any EU citizens looking to borrow in the UK. This included expats (British residents in EU countries).
Fortunately, as the UK navigated its new relationship with the EU, the availability of mortgage finance for EU citizens has returned to its pre-Brexit norms. All overseas clients are now in the same position as before; however, they now have more options. ”We’ve seen new lenders enter the market, the keenness to lend and find solutions has given the bargaining power to the consumer – through choice and competitiveness.’’
Interest rates, until recently, were historically low
The UK, as well as the rest of the world, saw a time (until December 2021) of historically low-interest rates. This attracted both individual investors and businesses from around the world to continue investing in the UK. As a response to this continued demand, we have seen more specialist lenders enter the market, they are able to look at each project on a case-by-case basis and offer individual products based on the risk profile of the client.
Prospective buyers now have a more comprehensive range of loans to choose from, and lenders are willing to offer competitive rates. As the UK continues to work through its new relationship with the EU, mortgage finance should remain available and accessible to borrowers.
Articus Outlook
The outlook for the market remains positive, Articus Finance and industry commentators predict that rates will continue to fall over the year – reaching the lows of 2% and below by Q1 2024.
Despite the continuing economic uncertainty, the UK property market has remained strong and Articus Finance continues to have a positive outlook for the future. The strength of the market is a testament to the resilience of the UK economy.
With property prices continuing to rise and demand for rental properties increasing, the UK property market looks set to remain strong for the foreseeable future. The outlook for Articus Finance is encouraging, and it looks well-placed to continue to benefit from the strength of the UK property market. GET IN TOUCH today for a free consultation.
