2017 was an eventful year for the UK property investment market. The impact of Brexit shook him to the core. Those planning to attend UK property auctions to purchase second or more residential properties were hit by an additional 3% stamp duty. The resignation of Mr. David Cameron, the then British Prime Minister, brought Pound to his lowest financial value in 31 years internationally. This also affected the UK real estate investment market!
This series of events does not seem to stop even as 2017 is about to end. The Bank of England has recently made changes to the loan / mortgage rules. These changes have significantly affected the investment plans of those who had applied for mortgage / loan approval to purchase residential properties at home auctions. Now, all the financial institutions and lenders are checking all kinds of records of all the properties associated with the portfolio of the applicants. These loan / mortgage rule changes have really changed the way the UK real estate investment market operates.
What else is expected in 2018?
• 2018 will also be an eventful year for the UK real estate investment market. As for the reason, Brexit is likely to hit again. Both the UK and the EU have scheduled a meeting on the matter. This meeting will largely determine the outlook for the UK real estate investment market.
• In case you are thinking of attending UK property auctions to buy residential property, wait a while and see the outcome of the Brexit meeting between UK political officials and EU members. It should play a waiting game even more because the EU is now trying to come up with a plan to postpone the Brexit meeting with the UK.
• It appears that the outcome of the 2018 Brexit meeting between the EU and the UK is a combination of good and bad news for investors. Those who were planning to attend home auctions to sell their residential properties for an ROI (return on investment) are likely to face a financial loss of 0.5% to 2%. This is troublesome news for homeowners.
• Those who wanted to buy property in London can smile as London house prices are about to fall. This is good news for those who wanted to invest in property in London. This will also restore the grip that the British capital has been losing among investors for the past few years.
• But you should not limit your investment plans or vision to London properties only. Thanks to the massive increase in house prices in other cities like Manchester, Liverpool, Birmingham, etc. These cities have seen house price growth from 10% to 17.5%. Many investors have even started attending property auctions in these areas of the UK.
What is the best advice?
2018 is set to be a good year for those planning to attend house auctions to buy a house in London. But it might be a bit difficult for the owners. Thanks to Brexit uncertainty and house price volatility. Therefore, you have no choice but to get in touch with experienced real estate investment agents in London.
