A new year is now well underway, and as ever, the papers are full of speculation on what 2020 will bring for the world of property. So if you’re currently considering investing in UK property, what should you expect
– and is 2020 the right time to buy?
Investing in UK property: the signs look promising for 2020
Unsurprisingly, the situation looks more positive than it did for most of 2019. Last year, price growth was subdued, with London and the South East particularly feeling the squeeze. The prime market saw an extended period of decreased activity, and this was only exacerbated in December, when many were worried a Labour government would target the luxury property market.
Yet as we begin a new year, stirrings of change are in the air. A Conservative majority has provided more stability and has broken the Brexit deadlock. Although of course there is still some uncertainty here, as there will be until we are much further down the line with Brexit.
It’s also important to note that, however much is spoken about ‘getting Brexit done’, the agreement of the UK’s relationships with the rest of the world will take many, many years to settle. As such, the short term won’t be about investing and expecting a quick return: now is the time for strategic investors looking for long-term price growth.
But as ever, savvy buyers can capitalise on this, securing competitive deals where once negotiation was unlikely to yield results. This window of opportunity may come to a close in 2020: experts predict the London market in particular will pick up pace steadily throughout the next year, although we don’t yet expect to see the return of the fast-paced market of old.
Investing in the UK as an expat or foreign national: is there cause for concern?
All in all, the signs look cautiously optimistic for investing in UK property. But what if you’re not a British national or resident?
Expats and foreign nationals may be concerned about how the UK’s evolving future relationship with other nations may affect their ability to own and finance property. But regardless of Brexit, the UK government has already shown that it is keen to stimulate external investment in the UK, and has encouraged mortgage lenders to be amenable to this.
International buyers also currently stand to benefit from the on-going slump in the pound. It’s uncertain how long this will last, and it could be worth taking advantage sooner rather than later.
What about property finance?
With so many variables at play in the markets, it’s hard to know exactly what will happen with both the UK and the wider world economy. But if you’re looking to arrange finance in order to invest in UK property, now is a good time to act.
Interest rates are at historic lows, and there are very competitive deals out there for high net worth individuals (HNWIs). Many of our clients are fixing in great deals for the foreseeable future, creating some certainty in an uncertain field. And we’ve recently seen several of the niche or smaller players in our network expand their criteria, which is promising if you have a complex case.
A positive outlook for the year ahead
Overall, the signs are promising – and we will hopefully see London shake off the slump of the last two years. It’s also worth noting that, should any worst-case economic scenario occur – which is unlikely – we will have plenty of time to plan and take action. This is another example of how having a broker with great industry knowledge will be invaluable; we can act on your behalf in case of any early signs.
Ultimately, we have good reason to be optimistic about the UK’s property market over the next year. But as ever, making the most of a property purchase also means getting the right finance in place – so whatever your aspirations, talk to an Articus broker today to see how we can assist.
