Brexit indecision led to turmoil in the real estate markets where the prices in some of the top regions fell during the first quarter. Many sellers reduced the asking rates to get buyers.
The sharp rise in cost, unaffordability, and unavailability of reliable residential units along with the uncertainties created by the EU exit may have introduced new opportunities for some buyers seeking some of the lowest prices in central London.
The prices in inner London were almost 3.8 percent down than a year ago and some of the homes in prime central London are now available at a 13.4 percent discount.
It was found that more than 50 percent of the home sellers owning assets worth below $2.6 million lowered the asking price in the capital city. The entities in the range of over 5 million pounds declined 6.6%, while, the sale of such units increased 3% in the first three months y-o-y.
One of the most active markets in the region was Wales in the last 12 months, where the asking price gained 4% and the rates in West Midlands gained 3% as per Rightmove asking price index.
According to the survey by Touchstone Education, which runs courses in the real estate markets of the UK, 78% of the clients believe the best investment opportunities were available in the Northern borders and 50 percent of the surveyed intended to target London and 53% wished to own a house in the South East, while, 49% wanted to invest in the South West.
Touchstone Education states there is scope for a rise in the rental yield in Scotland, where the performance of such investment will increase, on the contrary, the performance in the other regions of the country has almost flat-lined. The yield generated in England and Wales was about 4.7 percent in March.
New register for foreign-owned entities in the UK
To promote affordability in the capital city, the UK government is preparing to introduce the first register of foreign-owned houses to check money laundering illegally into the real estate sector.
Such investment resulted in inflation in Britain’s markets where there are many such units owned by the foreign wealthy buyers left unoccupied.
A report suggests about 86,000 such units worth over £4bn were purchased by highly corrupt individuals, and many of these have been identified in England and Wales. The foreign registered homeowners in Ireland will also be affected by the changes.
Those worth over £180m were subjected to criminal investigation in the years from 2004 to 2015 that belonged to the people involved in organized crime, who invested in the capital city and similar areas.
Some countries have restrictions on ownership by the non-nationals, and now the UK is preparing to introduce a plan where such publically accessible units will be maintained in a register, and the entities holding them and the beneficial owners behind the foreign investments will be recorded.