Majority of property investors remain unfazed by Brexit

Posted on Thursday, April 11, 2019

The latest analysis by Market Financial Solutions has found that after another seemingly pointless week riding the Brexit merry-go-round, more than half of the UK's property investors have indicated that it's business as usual and won't be changing their investment plans.

The research, which polled more than 500 UK property investors, takes a look at just how Brexit is impacting their long-term investment strategies. It found that since the EU referendum in June 2016, 64% of investors have not let Brexit impact their property investment decisions. 45% of investors have expanded their property portfolio since the EU referendum and only 7% have sold one or more homes as a direct result of Brexit.

According to the findings, 57% do not envisage their property investment strategy changing following the Brexit deadline (29th March 2019). There might be a spike in property investment activity after this date, though, with 29% planning on actively investing in new properties immediately following the Brexit deadline

The 2016 EU referendum signified the beginning of a new era in UK politics. It also trigged many predictions of the demise of the country’s property market.

However, despite the uncertainty caused by the on-going Brexit talks, the majority of property investors have carried on with their financial strategies unperturbed, new research from Market Financial Solutions revealed.

The bridging lender commissioned an independent survey among more than 500 UK property investors, all of whom own two or more investment properties. It found that when reflecting on the period since the EU referendum, almost two-thirds (64%) stated that Brexit has not impacted their property investment decisions.

In fact, 45% said they had bought at least one more property since 23rd June 2016, with only 7% stating they had sold one or more real estate assets as a direct result of Brexit. The research also revealed that the majority of investors do not see Brexit affecting their long-term strategies. More than half (57%) of respondents say they will not change their property investment strategies following the Brexit deadline.

Although, there could be a surge in activity within the real estate market after Brexit formally takes place, with three in ten (29%) property investors lining up new purchases for once the deadline has passed. The potential delay to the Brexit deadline could see this activity stalled.

Paresh Raja, CEO of MFS, commented on the findings: “There is a sense of Brexit-fatigue setting in across most financial sectors. But importantly, while some predicted that this uncertainty would cause house prices to tumble and property investors to flee the market, today’s research demonstrates that appetite for real estate as an investment asset has remained strong.

It is positive to note that the majority of property investors have been actively seeking new opportunities regardless of Brexit, and such buoyant behaviour looks set to continue over the coming months. Although a degree of hesitancy at times like this is inevitable, the research underlines the long-term strength of bricks and mortar investment to weather such periods.”


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