London investors are not a fan of Brexit, but that doesn’t mean you should fear this change that will inevitably affect the estate market. In fact, the estate market has been changing regardless.
Over the last several years, the estate market has seen considerable growth. However, while growth was extensive in up-and-coming, more affordable neighborhoods, where investors suddenly showed interest, the high-priced neighborhoods, such as Kensington and the like, were actually showing a decrease in growth. This was occurring far before the arrival of Brexit. At this point, some London estate agencies were appropriating this change to simply too many investors on the London luxury estate scene.
Given this, don’t rush to blame a slow in the luxury estate market on Brexit, when, in fact, there’s no reason to panic. While Brexit may cause minor changes, market professionals state that changes should be minor, and there’s not really any cause to worry considerably. Even with slightly falling growth, it’s expected that any decreases would simply put the London estate market back to where it was a year or two ago. So, don’t feel the need to cancel your estate sale, buy or investment. There’s no need and, in fact, panic will only make any downward turn in the situation worse and caution will only extend the issue, even though it’s not expected for any decrease to last more than a year. Possibly the biggest change to be seen will be for developers, as cheap construction laborers leave the country in response to Brexit. This may cause developers to delay new builds. However, this has yet to be seen as reality.
Those looking to invest in buy to let estates should see the most positive effect after Brexit, with renters continuing to increase their demand. You should be able to receive more money, therefor, for your same property in the coming years.
The main point? Don’t allow Brexit to affect your estate investment decisions, as any downward turns in the market were already occurring before Brexit became a hard truth, and, in some cases, the decision may even make your investment more affordable, or you may be able to increase charges on buy to let properties. While Brexit may be causing uncertainty on all fronts as Londoners and United Kingdom citizens move forward in the following months, there’s no need to anticipate a huge downward change in the estate market.
Still have your doubts? Talk to one of Morgan Goldsmith's qualified agents to learn more about the changes you can expect with your current investments and how to make the most of upcoming investments in the face of Brexit.