Why invest in the UK. The market of late has been a little circumspect when it comes to committing large sums of money to the UK property market, despite the obvious reduction in costs seen as a result of the devaluation in the currency post the Brexit vote.
As it stands it is still unclear the effects that Brexit will truly have on the property market, and with property news fluctuating regularly in an almost contradictory way, it is important to consider the current time, even with long term investments. The only thing that is certain is that the UK is a unique market, with a desire to own your property that runs throughout all elements of society and an end goal of almost every person living on this island. Again here is another unique aspect of the UK property market, and that is this country is an island, they are making no more land, and with an ever growing population and continuing demand for homes, a demand that outstrips supply by some margin. Figures suggest that there is a need to build 300,000 homes a year to meet the current demand, with only 150,000 being built, this leaves the pressure on property supply high, and will keep prices elevated in the near term.
The UK economy although suffering a small slowing in growth for the 2nd quarter of 2017 is still expected to hit 1.7% growth this year just below the 2% expected figure. With this in mind there is a great expectation that the Bank of England is likely to leave rates in the UK unchanged for sometime to come, this in turn will keep a lid on interest rates and further underpin the property sector. With rates at historic lows, and an uncertain equity market, the property sector is still viewed as a relatively safe place to both invest your money and get the returns that you will be unable to attain in other asset classes, despite the efforts of the government to cool the rise in house prices with the measures implemented in the last budget.