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Brexit: What it means for international property investors

03 Dec 2018

Two years after the UK government invoked Article 50 and began Brexit negotiations, it was announced recently that United Kingdom and European Union officials have agreed on the draft text of a Brexit agreement.

Cities such as Birmingham and Manchester have seen significant increases in property price, says Radford, and according to market reports it is forecasted that between 2018 and 2022 these cities will see house price growth of 20.5% and 22.8%, respectively, demonstrating their continuing strength and potential.

According to George Radford, head of Africa for IP Global, the impact of this latest development, and the Brexit negotiations overall, on investors and the market appear overstated and opportunities remain abundant. Investors have shown in the past two years that the UK’s stability and familiarity continue to be appealing.

As an illustration of this, is property prices in the UK’s key cities have gone up by 3.9% year-on-year and secure investment opportunities do not appear to be diminishing, says Radford.

Cities such as Birmingham and Manchester have seen significant increases in property price, says Radford, and according to market reports it is forecasted that between 2018 and 2022 these cities will see house price growth of 20.5% and 22.8%, respectively, demonstrating their continuing strength and potential.

In terms of rental property in London, he says growth is set to bounce back most strongly in the capital city - 15.9% for five-year compound growth.

Radford says he believes that there is quite a strong argument to do something sooner rather than later as far as UK property goes.

“Once this deal is finalised between the EU and the UK governments, regardless of what that deal looks like, it will do two things. It will give the property market and economy a boost generally as stability and knowing how things stand will mean people will start making decisions again on investments. This will also give the property market a boost as investors come back to the market and transactions start to happen with greater frequency again,” says Radford.

“The bigger and more immediate argument is that the GBP is weak, and so for international investors there is an opportunity to buy property at an effective discount. As soon as any deal is finalised, the pound will bounce back and so there is a clear argument why people should do something as soon as possible.”

“Our views remain positive on the UK and London property markets despite any Brexit uncertainty,” says Radford.

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