Property investment surge could come after Brexit, new poll suggests

Brexit has made UK property investors more cautious but real estate spending spree could follow when the country eventually leaves the European Union, according to a new survey.

The majority, some 55%, have paused their investment plans over the past six months as they await the outcome of Brexit, the survey commissioned by Experience Invest has found.

Some 59% are waiting for the 2019 Autumn Budget before pressing ahead with their investment plans and 37% have taken a listed property off the market due to a slowdown in activity.

However, 52% are monitoring properties they want to purchase but are waiting to see if prices fluctuate as Brexit approaches while 56% of investors say they have no faith that Prime Minister Boris Johnson will make a success of Brexit.

They survey also found that 51% of respondents 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 and only 31% think leaving the EU will negatively affect the value of their property portfolios.

The research also found that the fact interest rates have remained below 1% for the past decade has meant 59% of property investors are actively seeking ways to make their money work harder.

‘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,’ said Jerald Solis, business development and acquisitions director at Experience Invest.

‘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,’ he added.