The media is a powerful influence in the UK, and anyone taking a glance at the news over the weeks since the results of the Brexit referendum could be under the misconception that the knock-on effect of Britain leaving the European Union is purely doom and gloom for the property market.
This is not the case, and at Oakville Real Estate we have seen first hand how sticking to traditional company values, and not being limited in terms of enquiry sources, can mean post-Brexit is simply another chapter, rather than the end of the story. We have also encountered many other parts of the UK property market which are going strong, and even enjoyed an upturn, since the conclusion of the poll. It is time to begin being positive about Brexit.
While the number of enquiries from online portals such as Rightmove has undeniably declined post-Brexit, with some estimates estimating a fall of around 30%, real estate companies that can count on buyers through other channels that have not been affected. As an organisation that has been built up over 16 years, we believe it is our awareness of offline strategies that has made the difference, as opposed to companies that have relied mainly on internet leads.
And there are plenty of other reasons to be optimistic. A recent Daily Telegraph article confirmed that the housing market is growing, albeit at a slow rate, and has fallen back on the effect of supply and demand, as well as a healthy availability of finance, with a 0.25% cut on interest rates.
There was also talk of the house price surges that mean the average Brit is now worth £135,000, according to figures published in the Times. It underlines the importance of residential property when it comes to our personal wealth, and this has only been intensified in recent years by the lack of alternative viable pension options. With near 0% interest being offered by some bank savings accounts, investors with liquidity need to put their money somewhere to negate inflation - this is why an investment into property still makes so much sense.
Property companies with liquidity will be impacted by the proposed negative interest rate where banks will charge the company just to keep their money in the account. This will force them into the market. Until this changes, buy to let investments will always be the best alternative.
So it is certainly not all 'grey skies' when it comes to the strength of property as a personal investment. And there are also promising signs when we look at foreign investment into the UK market following the country's decision to exit the EU.
In our next installment, we will look at the impact of the falling pound and the effect on markets on a whole. Please register with us today to receive the next installment of our Brexit series.