Investment Prospects for UK Property Market in 2017Ink Well Mag January 4, 2017 0 COMMENTS
The Brexit vote and stamp duty elicited two of the most prominent factors in influencing the country’s housing market. The impact of these variables is likely to linger in terms of home prices, the luxury residential and rental sectors.
Despite CBRE’s prediction of a dip in the overall amount of investment in British properties, a more resilient consumer confidence and business investment will help in uplifting the country’s economy.
Investing in student accommodation in the U.K. among other asset classes are some of the viable prospects for investors in 2017.
Miles Gibson, head of UK research for CBRE, said that a continuously stable Eurozone might help in maintaining a positive sentiment amongst consumers and business investment. A seamless approach in Brexit negotiations or a stronger than expected economic recovery in the U.S. will also aid in this scenario, according to Gibson.
For student housing properties, Savills predicted that rents in London will increase by 3% and 2.5% nationwide in 2017. This is good news not just for property owners, but also for investors looking for solid returns in rental assets.
Prices for residential properties in the U.K. rose by 6.9% in October year over year. The increase represented the lowest price growth since Dec. 31, 2015. Fortune favours the bold as they say, so the lower price markup could be a sign of a better scenario ahead, since real estate prices could surge once the low number of available properties for sale matches the number of property buyers.
Still, the investment property market remains uncertain for 2017. There’s no guarantee of any favourable outcome from your capital. It could be marked with certain highs and lows, depending on factors affecting the sector.
However, you can reduce risk and improve chances of gaining higher returns by relying on investment brokerage firms specialising in this field.