Two years on from the EU referendum, the UK property market remains resilient

This Saturday marks the two-year anniversary of the EU referendum. This momentous political event signified the beginning of a new era of relations between the UK and the European Union, triggering into motion a series of profound events. This included David Cameron’s resignation and Theresa May’s appointment as the prime minister, the beginning of formal Brexit negotiations and a snap general election resulting in a hung parliament.

In the intervening 24 months, there has been little actual detail as to how Brexit will be implemented once the formal negotiation phase expires in March 2019. Nonetheless, the UK economy has proven resilient – in 2017, the country’s GDP grew by 1.8%, which was 0.3% higher than the growth forecast by Office for Budget Responsibility.

When we look at the performance of specific sectors over the past two years, demand for UK real estate has remained consistently strong. Market Financial Solutions’ survey conducted at the beginning of the year found that more than half (53%) of investors would rather direct their capital into traditional assets such as property instead of newer asset classes. This appetite for bricks and mortar investment has been reflected by the on-going rise in house prices – average house prices in the UK rose by 3.9% in the year to April 2018.

This past week, MFS’ CEO Paresh Raja has been featured in leading trade publications, including Property Reporter, offering his views on the how the property market has fared since the EU referendum in June 2016. Recognising rising market demand for real estate, Paresh has also notes how alternative finance has established itself as a viable source of capital for those in need of a loan to quickly secure a property.

To ensure that our community of borrowers, investors and brokers have access to market-leading intelligence reports, Market Financial Solutions will continue to release timely research to uncover how people are managing their financial strategy in light of key political and economic trends. Our team of experienced underwriters will also be on hand to offer advice on how bridging loans can be effectively used to quickly take advantage of upcoming investment opportunities, particularly as the UK prepares for Brexit.

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