Property investment outlook remains positive despite Brexit uncertainty

The outlook for property investment in the UK remains positive, despite the ongoing uncertainty surrounding Brexit negotiations. That’s according to a panel of industry experts interviewed by The Finance Professional Show.

Paresh Raja, CEO of Market Financial Solutions, said there is still much uncertainty surrounding the nature of the UK’s withdrawal from the EU, despite the scheduled exit date of March 2019 only being a matter of months away. “However, such ambiguity has not dampened the spirits of prospective homebuyers and property investors,” he commented.

This, he says, is down to real estate historically proving itself to be a safe and secure asset by offering stable, long-term returns. “As a result, demand for property remains high,” Raja continued. “Recent figures revealed that the average house price in the UK rose by 3% in the 12 months to June 2018 and this positive trend has been met with enthusiasm from landlords, with new research saying that more than half feel positive about the current state of the market.”

He added: “Inspiring confidence throughout the sector, this development signifies a positive outlook for the future of the property market over the coming year, particularly in light of the fast approaching Brexit deadline.”

Mario Berti, CEO of Octopus Property, is in agreement. “Despite wider market uncertainty, the returns available from owning, investing in and developing the right type of real estate continue to be favourable versus other asset classes, something that we expect to continue moving forward,” he said.

Berti believes there are a number of reasons for this, including: the supply/demand imbalance (with not enough houses being built to keep up with those who want to buy homes), the continued availability of cheap credit and a healthy economy. 

“Let’s not forget the fact that the UK remains a great place to do business,” he added.

Such positive sentiment is also matched by James Bloom, managing director of short term lending at Masthaven. He says the market remains upbeat despite the UK’s housing slowdown, with many investors choosing to hold fire until market conditions become clearer post-Brexit.

“The short-term sector has remained buoyant and continues to perform well,” Bloom said. “We are seeing more new entrants coming into the market which is increasing competition and providing customers with an even wider choice of products.”

He said this has led to even more product innovation ‘as lenders compete in this increasingly popular market’.

Intermediaries can gain a greater insight about upcoming developments and the future of the market after March 2019 at The Finance Professional Show, held at Olympia London on November 7 2018.

The show, which features a CPD-certified multi-format conference programme, gives attendees an opportunity to quiz industry experts for their views of the market. Nearly 100 lenders and providers will also be in attendance, including Market Financial Solutions, Octopus Property and Masthaven.

“We have a long-standing relationship with The Finance Professional Show and are confident that the show this year will be another great success – it’s a great opportunity to have such a large part of the broker community all under one roof,” Bloom said of the show.