What Does Theresa May’s Departure Mean for UK Property?
Today [24 May 2019], Theresa May announced that she will stand down as the leader of the Conservative party on 7 June. Mrs May will continue to serve as Prime Minister while a Conservative leadership contest takes place.
While the news does not come as a surprise, there have been calls for the Tory leadership contest to focus on the long-term challenges facing the UK and not just Brexit.
Reacting to Mrs May’s announcement, Jerald Solis, Business Development and Acquisitions Director of Experience Invest commented: “Theresa May’s position as Prime Minister has been on shaky ground ever since her Brexit deal was first rejected in parliament, so while this is not a completely surprising development, it nonetheless casts further questions over the Government’s ability to manage Brexit.
“I’d like to see housing included as part of the upcoming Tory leadership contest, but the unfortunate reality is that most of this campaign will be dominated by discussions on Brexit. At this critical juncture, our next Prime Minister must demonstrate resolve to not only deliver some kind of solution to Brexit, but also have a broader vision to address the long-term challenges facing the UK, including the housing crisis.”
Brexit and UK property
Since the Referendum in June 2016, there has been a lot of speculation surrounding how the UK’s departure will affect the housing market.
Despite the scaremongering surrounding UK house prices, Experience Invest research has shown that Brexit has done little to dampen the spirits of property investors and housebuilders, who remain positive about the long-term future of Great Britain’s real estate market.
In fact, almost 40 per cent of landlords surveyed by Experience Invest revealed that they plan to add to their portfolio in 2019.
This encouraging trend has also been reflected in studies published by global leaders within the industry.
Recent research from CBRE has shown that investment in the private rental sector exceeded the £1 billion mark in the first three months of 2019. According to CBRE the positive start to the year illustrates “continued strong appetite for the sector”.
What’s more, Knight Frank forecast that investment in new rental homes will reach £146 billion by 2025, marking a significant increase from the £87.3 billion of expected investment in 2019.
Despite Brexit, property investors and housebuilders remain positive about the future of the UK’s property market.
Post-Brexit Property Investment Guide
If you are looking to make the most of the investment opportunity that Brexit presents, Experience Invest’s new Understanding Property Investment in a Post-Brexit World Guide is a useful resource.
Download the free guide and discover how successful property investors are navigating the UK’s real estate market.