Future of property investment bright despite Brexit fears
Since the vote to leave the European Union, the property investment market has decreased, but investors are confident that the market will recover.
A May 2017 survey by the financial investment company MFS found that property investors were confident the market would bounce back. Around 91% of property investors asked said that Brexit will not stop them investing in property over the next two years.
Recent figures from the Bank of England reveal that there has been a decline in mortgage approvals for both houses purchases and remortgages. The bridging loan sector, however, has experienced a growth in lending activity.
According to a May 2017 article on MortgageFinanceGazette.com, The Association of Short Term Lenders (ASTL) reported an increase of 123% in bridging applications during the first quarter of 2017. Many property investors see bridging finance as an alternative to mortgage lending to expand their property portfolios. It is estimated that the bridging finance market is now worth £4bn.
In the article, bridging expert Paresh Raja urged the government to support the property market to prevent it being negatively affected by the Brexit negotiations. He said:
“As an industry that employs more than two million people and contributes over £94bn to the UK economy, the property sector must be supported at this pivotal moment of economic and political transition.”
There are many opportunities for investors in both the residential and commercial sectors, and Raja added that there is a positive attitude to property investment and a large demand for property.