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HOW TO BREXIT-PROOF YOUR PROPERTY INVESTMENT

24/09/2019

  • Acentus Real Estate advises investors to seek out a dynamic, growing city with a diverse economy
  • Average UK property price rose 6.2% in 3 years following Brexit referendum (HPI)
  • Midlands/North projected to see property price growth of 15.3% from 2019-2023 (Savills)
  • Liverpool’s Metalworks perfectly positioned to benefit from city’s regeneration work
We live in uncertain political and financial times. The UK’s July growth figures have eased fears that the country could fall into a recession, with the economy growing by 0.3% during the month. The public, however, are still being cautious, with HomeWorkingClub.com reporting an increase of more than 1000% in people Googling “how to prepare for recession” in the year to August 2019.
While talk of recession seems to be abating for now, we still have Brexit to contend with. Parliament may have shut down for the next few weeks, but the rest of the country is carrying on apace. For those investing in the UK’s property market, the spectre of Brexit has been something to contend with for over three years now. Despite fears around Brexit’s potential impact, property prices during that time have risen from an average of £216,750 to £230,292, according to the government’s House Price Index.
That means that investors who ignored the dire warnings about the Brexit vote triggering a housing market crash have enjoyed an average 6.2% increase in the value of their properties since the referendum.
“While Brexit does add an element of uncertainty into the proceedings, nobody can ever predict what the future holds, so investment always carries an element of risk. That said, property investment in the UK comes with some solid market fundamentals behind it. Not only that, but there are steps that you can take to minimize your exposure and essentially Brexit-proof your property investment!”
 
Leanne Black, Sales Manager, Acentus Real Estate
Some of those who are best placed to project what may happen in the future are the property experts at Savills. Their five-year forecast highlights the value of property investment in the UK’s Midlands and Northern regions, with prices forecast to enjoy growth of 15.3% between 2019 and 2023 – higher than any other area of the country. At the same time, JLL highlights the potential of regional cities when it comes to the private rented sector, forecasting average rent growth of 17.6% in Liverpool between 2017 and 2022.
Independent property service Acentus Real Estate is working with investors who are drawn to the long-term potential of the regional UK housing market. Years of undersupply, coupled with population growth and demographic changes, have placed significant demand on the market. The UK hasn’t been building homes at a sufficient pace to keep up with demand for well over a decade, if not two. This fundamental lack of supply remains the same regardless of the country’s political manoeuvring with the EU.
In terms of Brexit-proofing a property investment, the Acentus team have a number of tips. Firstly, find a city that’s got an expanding population and healthy, growing GDP. Second, look for one that has a diverse economy, so that its economic success is not dependent on one particular industry or sector. And thirdly, consider how much the city is investing in its own regeneration. Does it have big plans for the future? If so, those plans could do much to support the future growth of the city’s housing market – certainly in the area around the regeneration schemes, at least.
The Metalworks in Liverpool ticks all the right boxes in this regard. Adjacent to the city’s business district (for which major regeneration plans are currently under discussion) and a few minutes’ walk from the city centre, The Metalworks will deliver 319 stylish, urban apartments spread across two blocks, connected by a 24-hour concierge service and beautiful public realm. The contemporary city homes have been efficiently designed to make maximum use of space, while bedrooms and living rooms feature floor-to-ceiling windows, flooding the homes with natural light and providing impressive city, garden and river views.
Liverpool itself is thriving. Not only does the city regularly top the UK’s list of areas where house prices are rising fastest, but its tourism sector is booming, with visitors attracted to its creative, cultural and musical scene, as well as its museums, historic buildings and, of course, its football ground. Those who live and work in the city have seen it change hugely in recent years, with regeneration work spurred on both before and since its 2008 ‘capital of culture’ status.
 
“If you’re seeking a UK city that has all the right conditions for being Brexit-proof, so far as anywhere can be, then it has to be Liverpool! The city has such an incredible amount going for it, which is why it is booming in terms of both population and visitor numbers. It’s the ideal place to invest in property in order to capitalise on the potential for both capital gains and rental yields.”
 
Leanne Black, Sales Manager, Acentus Real Estate

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