Ever since Brexit was announced there have been two groups of people in the real estate investment space.
Group 1: “Brexit will be a threat to the property and construction industry and UK businesses.”
Group 2: “Brexit means new opportunities for the property and construction industry and UK businesses.”
At Promagem we like to position ourselves on the side where the opportunities lie because that’s where we do business. Because in a space where there is uncertainty, the only where we can be certain of is that there will always be a way to do business.
The real estate market is always at the mercy of the markets, but those who paralyze will see new opportunities pass by on them. Many people think that the relationship of the UK with the EU will change individual circumstances as well as the national picture. There will be people out there that are placed in a position where they have to sell their properties, but from another perspective, life circumstances place people in this situation frequently:
- Selling off a portfolio
The result of the Brexit vote in the referendum might leave more people in a situation where they must sell, and as investors, we believe that this can be used to our advantage.
In other words, this means that we can negotiate a good price with sellers that have a property they need to get off their hands. A large part of the negotiation process is having all the information you need at your fingertips. Finding out the condition of a property gives you some leeway in the negotiations.
While London has seen fantastic growth over the last few years, the regions have taken some time to catch up. Rents have been increasing and the different parts of the UK don’t show the same signs of a potential slowdown as London. The bigger regional hubs of the North will benefit from government plans to build a Northern Powerhouse economy, meaning investment in infrastructure and transport links to make the North more competitive.
The South East is seeing a steady rise in property demand and prices, as people look to get out of the overheated London market. Business and commuters look for a lower cost of living outside of London and then take the hit on transport costs back to the capital. The fact is that the UK outside of London is seeing growth means that this is likely to continue, despite the stagnant Brexit negotiations.