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Brexit Not a Major Concern for Property Investors

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  • 85% of current property investors globally are investing in the UK market despite Brexit concerns
  • Of these, one in four cite Brexit as the catalyst for their investment in UK property
  • Of all investing High-Net-Worth-Individuals (HNWI), three in five invest in property

Brexit will undoubtedly be one of the most debated topics to go down in UK history, however new research has revealed that when it comes to property investment, it isn’t the major concern the headlines would suggest.

A global survey of HNWIs (defined as earning more than £100,000 p/a) conducted by Censuswide on behalf of SevenCapital has found that more than four in five (85%) of those who are currently investing in property are investing in the UK’s property market, regardless of Brexit.

Furthermore, of those who identified as investors generally (65%), around three in five (59%) invest in property – the second most popular investment product behind stocks and shares.

Of all respondents from the UK (investors and non-investors) more than 30% identified as currently investing in property with all of those confirming they invest in UK property and, interestingly, of these nearly one in four (23%) cited Brexit as the catalyst for them to invest.

Understanding the mid- to long-term view, asked how strong they believe the UK’s property market will be in the next 18 months, more than half (55%) believe the market will be good to very strong, with that figure rising to around two in three (64%) in three to five years’ time.

These are encouraging statistics for the UK property market, during a period of uncertainty and generally negative speculation over what Brexit will bring.

Andy Foote, director at SevenCapital said:

These figures demonstrate that people generally recognise that there are bigger factors to consider over Brexit when it comes to the overall trends in the UK property market. Realistically, it’s the fear and the perception of Brexit that will have any effect, rather than the physical act of leaving the EU.

“Ultimately, if the market were to take a dip after Brexit, seasoned investors will know that this would more likely be a catalyst for the inevitable swing back. The property market is a prime example of well-known cyclical patterns, growing through recovery and emerging stronger than previous peaks. In other words, if it takes a dip, as it did 10 years ago, it will recover and come back stronger.

“It’s also important to understand two other key factors. Firstly, the chronic undersupply means there is an ever growing demand for homes in the UK – whether rented or owned – and that is not something that is going to change with Brexit.

“Secondly, property isn’t a quick purchase or investment, unless you are a ‘flipper’. If you’re looking to buy a home, the chances are you’re not going to be thinking about selling up again in less than 5 to 10 years’ time, and if you’re a property investor, you’re likely to be looking for long-term gains from it. Either way and dip or no dip, the price of your property, providing you did your research properly before buying, is likely to appreciate in the long run.”

The survey was conducted amongst individuals earning more than £100,000 per year and who live in the UK (55%), Hong Kong (17%), Dubai (17%) and South Africa (11%) – all regions known for their interest in the UK property market.

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