Despite some wariness, other, more bullish, buy to let investors are recognising that now could be the perfect time to buy and as such are on the search for new opportunities in proven housing markets which are on the up.
Recent data from Hometrack and the Office for National Statistics proves the impact of Brexit on property prices in cities and urban areas has been negligible, with only one tracked city seeing a drop in average prices since the 2016 referendum. As well as most areas recording positive growth, some key cities like Birmingham, Edinburgh and Manchester have experienced prices rise by an average of 15% over the two years since the vote – a sign of healthy and competitive property markets stimulated by factors like population growth.
This sustained development indicates a property market in Britain worth keeping an eye on when it comes to investment, especially right now as the weak pound makes investing even more valuable for those overseas. For example, American investors could make a saving up to US$62,800 on a flat priced at £200,000 thanks to the low exchange rate. This coupled with rising property prices in key markets and ballooning rents make buy to let in Britain an attractive proposition.
Guy Bradshaw, Head of Residential at United Kingdom Sotheby’s International Realty, said: “We have already seen significant interest from American buyers who are eyeing up the favourable dollar to sterling exchange rate. The economy may look weaker today, but the property market is resilient and it is forecast to bounce back by 2023. Buyers adopting a long-term outlook will be making a savvy investment by purchasing in 2019.”
It is of course understandable that for some investors now is a time to exercise caution, however it is important to remember that Britain has long been home to cities which are global centres of business and culture, and this is likely to remain unchanged post-Brexit.
If you’d like to hear more about investing in buy to let in Britain contact Knight Knox today to speak to one of our expert consultants!