As the Brexit deadline looms, new research commissioned by Experience Invest has uncovered how property investors are managing their financial strategies.
According to an independent survey of more than 1,000 UK-based property investors who all own three or more residential properties in the UK, 55% have paused on their investment plans in the past six months as they await the outcome of Brexit. Even more (59%) are eager to discover the contents of the new government’s 2019 Autumn Budget before committing to any major financial decisions.
Over half (56%) of investors have no faith that Boris Johnson will make a success of Brexit.
When it comes to the property market, 37% of property investors say they have taken one or more listed properties off the market in the past year due to a slowdown in activity.
The majority of investors (52%) are actively monitoring potential property investments but are waiting to see if prices fluctuate as Brexit approaches. Indeed, 51% of the people surveyed said they believe there will be a surge in activity within the property market after 31 October.
In the long-term, investors are confident the real estate market will remain resilient despite Brexit uncertainty – only 31% think leaving the EU will negatively affect the value of their property portfolios.
Elsewhere, Experience Invest’s research found that the fact interest rates have remained below 1% for the past decade has meant three-fifths of property investors (59%) are actively seeking ways to make their money work harder.
Jerald Solis, business development and acquisitions director at Experience Invest, said: “There has been a great deal of speculation about how Brexit will impact the UK’s property market. Since the referendum, however, while some parts of the market have slowed or dipped slightly, prices on the whole have held firm or, in many regions, risen steadily.
Nevertheless, our research clearly shows many property investors are now adopting a ‘wait and see’ approach as the Brexit deadline draws near. And this means there could be a surge of activity once Brexit materialises; once the dust settles, investors are evidently preparing to spring back into life, which could result in far greater activity across the UK property market.”