Property investors taking ‘wait and see’ approach, Experience Invest study finds
- 25 Sep 2019
- In the press
With so much uncertainty lingering around Brexit, and other significant developments such as the Autumn Budget still to come over the coming months, many investors are taking a ‘wait and see’ approach to their investment plans.
That is one of the key findings of a recent study by Experience Invest based on the views of 1,000 property investors, which received press coverage in FT Adviser.
Nearly six out of ten respondents (59 per cent) said they would wait for the details of the Budget before pressing ahead with their investment plans, while more than half (55 per cent) wanted to see how Brexit would unfold before making any big decisions.
A similar proportion (52 per cent) were monitoring potential property purchases but biding their time in case of any possible price fluctuations.
Spike in activity expected after Brexit
In terms of what the future could hold for the property market, once the UK’s exit from the European Union is finally resolved, Jerald Solis, business development and acquisitions director at Experience Invest, said it’s possible there could be a sudden spike in activity.
“Our research clearly shows many property investors are now adopting a ‘wait and see’ approach as the Brexit deadline draws near,” he commented.
“This means there could be a surge of activity once Brexit materialises. Once the dust settles, investors are evidently preparing to spring back into life, which could result in far greater activity across the UK property market.”
Mr Solis also highlighted a positive trend for the industry in an article for Global Banking and Finance Review – specifically the enduring appeal of UK property to international investors.
Overseas investment has continued to flow into various regions, with Ernst & Young research showing that Northern Powerhouse cities like Manchester have attracted some of the highest levels of foreign direct investment of any region outside London.
Regional opportunities appeal to international investors
According to data from Hamptons International, international buyers purchased 57 per cent of homes in prime central London in H2 2018, the highest level since H2 2012.
Mr Solis concluded that, in the long term, UK property will retain its “timeless appeal, and investors can look forward to a more optimistic period of recovery as certainty is regained”.
If you would like to find out more about investors’ post-Brexit plans and strategies, download Experience Invest’s new guide on the subject.