Chat with us, powered by LiveChat

Stability Amidst Uncertainty: Is it time to invest in the UK property market?

December 10, 2019

The UK property environment shows signs of remaining steadfast despite a challenging global economy. Could a bridging loan from Tiger Financial help you enter a surprisingly strong and stable UK property market?

Is it time to invest in the UK property market?

Is it time to invest in the UK property market?

The uncertainty that has characterised the UK economy since the Brexit referendum in 2016 continues to dominate the political and economic climate. Brexit extensions combined with unknown general election outcomes creates the temptation for investors to sit on the sidelines. But there is an opportunity amidst the turmoil. Prices in the residential and commercial sectors have softened and prices are predicted to rise after the election and again post-Brexit (“the post-Brexit bounce”). Investors who act quickly are likely to find that their actions will pay off in the long term.
Prospective players in the property field are looking to the political manifestos, particularly those of the Tory and Labour parties, where housing policies and specifically stamp duties are a contested feature. Actors are inclined to wait to see how planned purchases or sales might be affected. On the table is a proposal by The Conservative Party of a 3% increase in stamp duty for overseas buyers. (At present non-resident home buyers currently pay the same rates of stamp duty land tax as those living in the UK.) While sellers have expressed concern that a stamp duty increase will deter overseas buyers it may not be all bad news. Historically similar increases have to lead to sellers softening their prices as was seen following increases in 2014 and 2016.

 

The ONS house prices data for May showed a stark gap between those places where property prices are rising  around the UK and those where they are falling

 

There are other positives to consider as well. The UK property market is still a strong sector overall and it has proven itself able to hold fast in the face of ever-shifting market and political forces. In the long term, there are still huge levels of demand for the UK and especially London property and investors are likely to be rewarded. The family market has shown relative strength indicating that the process of moving house, to a certain degree, transcends Brexit. The more good news lies within the industrial sector where vacant space is down further demonstrating that the fundamental drivers of growth are still strong. Low borrowing costs, a strong jobs market and more affordable housing prices are all factors that are helping to keep the property market one worth investing in.

 

Image result for uk property market 2019

 

Tiger Financial offers bridging loans which can help potential investors enter this rewarding market and navigate the ups and downs of Brexit extensions and general elections. We are active across the property sector meaning that whether you wish to invest in residential or commercial property or land, we have the expertise to assist. We offer plans that are bespoke, creative or flexible depending on your needs which means that whatever your standing we have the capabilities necessary to find you the most suitable lender to suit your needs and we will work with your from inception to closing meaning that we are there to guide you every step of the way.

 

For any enquiries relating to property development finance, speak to Tiger Financial on 020 7965 7261 or email hello@tigerfinancial.co.uk