The uncertainty over Brexit has meant a lot of investors have held back their funds until they know what the future for the country will look like. But this doesn’t mean the health of real-estate investment in the UK is in a bad shape, in many respects short term pain may lead into long term gain.
There is an expectation in the equity market that cash will flow into the country once Brexit is resolved, no matter if we leave with or without a deal. Once the future is certain – and the pound is stable – the money will flow.
The uptick in investment may not happen the day after we leave (which is supposedly October 31 but who knows at this point). Rather it will start once the people in charge of the money have had time to take in the new reality, plan their strategy and find suitable investments the future for the UK investment market looks good.
The government has been keen to promote everywhere but the capital and many of the UK’s other major cities have started to become more lucrative. The BBC has moved to Salford, Liverpool has become a centre of culture and universities across the North West have been punching above their weight making them desirable places for ambitious students.
Several studies recently have found Merseyside offers the best return on investments in property as both renters and landlords are beginning to recognise the opportunities the region has to offer. A study carried out by One & Only Pro, found all of the top ten places for investment were in the north, with Liverpool offering the best return on investment.
So, while we wait and see what happens with Brexit, it might be wise for any property investor to start thinking about getting out of London and looking elsewhere for the best yields. The South West and the East Midlands are particularly strong in this area, with more stock additions than other areas of the country. The South West is thriving in this sense, with more new builds completed than in any other part of the country (with 26,800 new dwellings added) while new builds also picked up in the East Midlands, with 21,400 dwellings added. Going into 2019, this means a lot more supply in those areas – though this is coupled with a persistent growth in house prices too.
There was good news for landlords here too, with research showing that the Midlands university city of Nottingham provided the best buy-to-let yields of the country, thanks to a community of 37,000 students. Rental properties within the NG1 postcode gave investors the best returns of the country, with an 11.99% yield, with neighbouring NG7 delivering 8.8% yields.
