As per the real estate managers, the property markets in the UK may rebound once Brexit is resolved. The equity investors are seeking alternatives in the real estate where the asset class remains unaffected by the turmoil in the political situations. The buyers at home and overseas seek clarity in the sector to finalize their investment. For overseas buyers, the UK provides safe investment in conditions when other parts of the world are undergoing immense changes. The decline in currency value makes the current valuation attractive. Prime Minister Theresa May’s extension to the Brexit deadline remains a challenge but in the post Brexit phase, the market is expected to pick up. Before recovery, the stock markets may undergo correction where there will be some selling pressures where many investors may seek alternative opportunities in the property sector.
London is the hub for financial services but the investors are seeing new places.BBC set up its new camp in Salford and PwC started its office in Leeds. The population of Manchester grew twofold in the last decade due to the increase in public sector investments. Many such regional cities are growing and may become the financial hub in the future, where the firms can get highly qualified workers to help them grow. These cities offer a better quality of life and the governments may introduce policies to improve living conditions by promoting growth.
Mortgage requests increase
The housing market has been hit by unpredictability but the market figures show the number of mortgage requests by the first time buyers is almost close to the pre-financial crisis levels where the investment by the first time buyers have been supported by the improvement in the labor market conditions, rising employment, and growth in earnings. The factors supporting the increase in requests for the mortgage include the low-interest rate and attractive valuation. For the first-time buyer raising a deposit has been the biggest hurdle but the increase in average earnings and low rates promotes affordability. The reports on housing market activities found the number of transactions where the number of approved mortgages and other relative data remained stable indicates the sentiments are improving. However, the data found the new buyer inquiries declined and the number of properties put on sale is diminishing. The online agency Yopa suggest, even amidst the current situation there is no sign of sustained decline in the average home price, which is encouraging.
Rents increasing in the Lothian region
The rise in rents and housing costs are soaring even in the regional cities where between 2010 to 2018, the average private rents for one-bedroom increased 39.8 percent in the Lothian region (that includes Edinburg). The rent for two-bedroom grew 42.3 percent and three–bedrooms 46.6 percent – as per the Scottish government report and investments. The average wages fell in comparison to inflation during this time and created a housing shortage where the councils estimate there are 240,000 properties in Edinburg and only 12,000 are listed on Airbnb.
To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).