Investors undeterred by Brexit

Investors undeterred by Brexit

New data from UK property developer, SevenCapital, has shown that rather than holding back on investing in the run up to Brexit, investors are piling into the UK property market, with a significant amount of landlords actually stating that Brexit has been the catalyst for investment.

The global survey of high-net-worth individual’s (HNWIs), those who earn in excess of £100,000 annually, was conducted by Censuswide and investigated the investing habits of this group, and whether or not Brexit had a notable effect on choices made – with the results shedding interesting light on the current outlook of investors.

The results show that over four in five (85%) property investors globally who are currently investing in property, are investing in the UK’s property market, irrespective of Brexit. Of those surveyed, 65% identified as investors, and over half of those (59%) said that they invested in property, making it the second most popular investment type behind stocks and shares.

Of all UK residents surveyed, over 30% said that they are currently investing in property, with a significant amount (23%) saying that Brexit was actually the reason for investing in property.

Andy Foote, director at SevenCapital commented: ‘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.’

He added: ‘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.’

The figures back up the argument that any dip in the market will inevitably be followed by an upswing, with 55% respondents saying that they believe in the next 18 months the market will be good to very strong, with the number rising to around two in three (64%) in three to five years’ time.

Foote points out: ‘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.’

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