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Post Brexit: The UK’s real estate market appears to have entered a new era of relative clarity

The UK housing market has witnessed a turbulent three-and a half-year period, a result of the EU Referendum, a hung Parliament lasting the best part of two and half years and the recent General Election.

However, with a majority win for the Boris Johnson-led Conservative Party, the UK’s real estate market appears to have entered a new era of relative clarity. 

According to Rightmove, in the 28 days following the General Election result, the number of properties listed for sale increased by 15% when compared to the same period a year earlier. Also, the number of sales agreed increased by 12% in January this year when compared to the same time last year. 

These figures were further endorsed by CBRE’s UK Real Estate Market Outlook 2020 report, which anticipates the UK’s real estate market will experience solid returns of 4% per annum between 2020 and 2024. 

Chestertons MENA Managing Director, Nick Witty, has welcomed the opportunity to look to the future as investors capitalise on the uptick in the UK real estate market. “We expect the post-Brexit euphoria to continue for the first part of the year as the pent-up demand which began to be released in the second half of last year gathers momentum,” he explains. 

“This does, however, have to be tempered to some extent because of the subdued number of properties coming onto the market in the UK, which is likely to hurt transaction numbers.” 

Real estate investors also need to consider the overall outlook for the UK economy. According to the Bank of England’s January 2020 Monetary Policy Report, UK GDP growth was modest. However, it is predicted it will pick up from 0.4% in Q1 2020 to 1.4% in Q1 2021. Similarly, employment levels in the UK are at record levels and average salaries above inflation rates, underscoring a healthier, expanding economy underpinning the housing market.  

Read the full article here 

 

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