UK property market barely affected by Brexit

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Britain is leaving the European Union in March 2019, but this fact seems to have had a negligible effect on the property market, reported in January 2018.

Immediately following the vote to leave the EU, there were predictions that the UK property market would slump. Figures published by HMRC revealed that in 2017, the total number of property transactions was over 1,223,400 which was just 0.58% below that of the 2016 figure of 1,230,580. If Brexit has had a negative effect on the property market, it appears insignificant so far.

Property prices in London have meant that many people cannot afford to purchase a home in the capital, and this has reduced demand. However, in regions outside of London, particularly in the North, houses are more affordable, and demand from buyers is high.

Commercial property investment in the UK is performing strongly. Although the pound has recovered a little, it is still weak, which makes commercial property investment attractive to overseas investors. The latest data from BrickVest showed that £55bn was invested in commercial property last year, and a similar figure is forecast for 2018. Britain has overtaken Germany as the top place in the world to invest in commercial property.

Although interest rates went up slightly in 2017, any rises in 2018 are expected to be small. This means that interest rates for both residential and commercial mortgages should remain low. Any increases should not significantly affect the number of property transactions and mortgage applications in 2018.

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