The pound sterling has been strong and stable currency. There is an opportunity for overseas property investors to take advantage of the short-term weakness in the wake of the EU Referendum result. The pound sterling has devalued relative to other currencies but the long term fundamentals are still true: The U.K conducts most of the financial transactions between the USA and Europe. The is no reason why this would not continue. Additionally, the U.K and England in particular have a safe political environment. If overseas investors purchase property during this period of uncertainty it is cheaper in relative terms and the GBP could rebound thereby leading to a quick appreciation and profit for the investor.
Britain Leaving the EU Means Less Competition in the Property Market
There has been much speculation as to how a vote to leave would affect investors and the property market in the UK. Ratings agency Moody’s reported that Brexit would affect London’s housing market the most, as there would be fewer sales to EU nationals which means less competition and subsequently lower house prices. This is good news for potential investors, who can take advantage of falling property prices. Although there may be fewer sales to EU nationals, the UK will no longer be bound by EU regulations of property investing and sales, which could be beneficial to potential investors.
Brexit Means Lower Interest Rates on Mortgages
Economists have argued that interest rates should be set to fall, as the Bank of England tries to stimulate the economy. This is welcome news to anyone looking to take out a mortgage on a property, and even in the run up to the referendum five and ten year fixed-rate mortgages have been at their lowest ever level.
How Will the Leave Vote Affect Student Accommodation?