United Kingdom

Perfect Storm or Washout – Is Now a Good Time To Invest In UK Property?

Brexit & Risk

You have to have a certain appetite for risk to be purchasing property in the UK amidst Brexit uncertainty and under the rule of a “weak” government, which does not have a clear majority in the house of commons.  These political factors indicate a potentially rocky future for the UK government, economy and general stability.

There is a real risk to London’s high earning population, as several institutions such as Banks are moving their headquarters elsewhere. The London property market is slowing down as a result and prices are reducing overall in the City Centre[1].
This situation, however, presents certain opportunities that shrewd investors are taking advantage of.

Weak Pound
The Pound Sterling is very low; not historically low, but low nonetheless.  Therefore investing from outside the UK is potentially lucrative due to the potential uplift on the currency value.

Strong North
Unlike the London downturn, prices in the North of the UK are rising fast, whilst remaining relatively low in comparison to the rest of the country.  Occupancy rates are high and a well-selected portfolio could yield very high returns indeed.  Additionally, a timely purchase could lead to attractive future value increases.
Add to this the changes in the mortgage interest relief act (S24 Finance Act 2015) that are causing landlords to offload their portfolios, and you have a unique opportunity to pick up ideal properties from fed-up landlords.

Perfect Storm
We at MPG believe that with the right combination of factors, this could be a rare window of opportunity to invest in one of the world’s most established property markets.  With the experience and know-how to source the right properties, high yield can be achieved.  With the right investment structure, many of the issues that private landlord are experiencing can be overcome.  This might well be the perfect moment to enter the UK property market.

Written by Mark Lloyd, Managing Director of Max Property Group UK and Director of “How to become a Property Investor company – Property Mastery Academy”