Brexit stressors like changes in the politico-economic factors greatly affected the UK property market. However, overseas ultra-rich buyers continue to show interest in certain areas, particularly the sectors where the government backs such investments. 

Overall the number of real estate transactions in the UK in the first quarter stood at 301,290. In contrast, the last month's data was at 101,830 (as per the HMRC reports), showing the market remains robust even in the current scenario of unpredictability over Brexit.

Overall with the current rate, the total number of homes bought and sold in the UK will be almost the same as in the last four years. However, the recent surveys on the best places to sell in England and Wales find Swindon and Strood having the lowest average time on the market at 101 days for sale ( as per Quick Move Now and home.co.uk report).  

The other fastest-selling regions include Gloucester, Ashford, Rainham, and Basingstoke. In 2017, Bedford held one of the fastest moving properties, where the property on the market would stay no more than 76 days, but now the region takes longer to sell.

The first-quarter data of the house index show the average rise in property price was 1.6 per cent in the three months, which shows more stable trends in the real estate markets, where the increase in average house price was 3.2 per cent.

The month-to-month data in the sector has been volatile and demonstrates risks in some of the volatile sectors. The data shows the number of mortgages approved was 40 per cent below the pre-financial crisis levels.

The UK Labour Party is planning to cut allowance for converting office and industrial buildings into residential units without planning permission. Nevertheless, the overall trends remain positive in the sector. 

The analysts expect the rates to improve as the salaries are growing faster than the home price in some regions (per the recent Halifax report).

Cross Border Trends

In March, cross-border spending reached $598.3 million, whereas $5.9 billion was invested in the fourth quarter (Refinitiv). However, the study on foreign investments also finds the proposed increase in stamp duty by a 1 per cent hike could hit such investments; thus, the ministers blamed the overseas investments behind inflation in-home prices, causing unaffordability to the UK-based first-time buyers. 

Foreign investments declined in the first three months compared to the last three quarters of 2018, reaching one of the lowest in the first quarter since the first quarter of 2016. The data included investments in the residential and non-residential sectors, hotels, REITs, lodging, and other commercial sectors. 

One of the biggest issues has been the rising tax burdens on the high-value residential markets. However, the data also finds the Chinese buying inquiries in the UK properties have been progressively declining, apart from the decline in sterling price since 2016, which has been encouraging. 

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