2017 was an eventful year for the UK’s property investment market. The impact of Brexit shook it to core. Those who were planning to attend property auctions in the UK for purchasing second or more residential properties were hit by additional 3% Stamp Duty. The resignation of Mr. David Cameron, the then British Prime Minister, brought Pound down to its lowest financial value in the last 31 years at the international level. This affected the UK’s property investment market too!
This series of events does not seem to be stopping even as 2017 is about to end. The Bank of England has recently introduced changes in mortgage/lending rules. These changes have significantly affected the investment plans of those who had applied for mortgage/loan approval for buying residential properties at house auctions. Now, all financial institutions and lenders are checking all kinds of records of every property associated with applicants’ portfolio. These changes in mortgage/lending rules have really changed the way the UK property investment market operates.
What Else is Expected in 2018?
• 2018 is also going to be a very eventful year for the UK’s property investment market. As for reason, Brexit is likely to strike again. Both the UK and EU have scheduled a meeting in this regard. This meeting will largely determine the picture of the UK’s property investment market.
• In case you are thinking about attending property auctions in the UK for purchasing a residential property, wait for some time and see the outcome of Brexit meeting between UK political officials and EU members. You should play a waiting game even more because the EU is now trying to come up with a plan to put-off Brexit meeting with the UK.
• Looks like the outcome of 2018 Brexit meeting between the EU and UK is a combination of good and bad news for investors. Those who were planning to attend house auctions for selling their residential properties to earn some ROI (Return on Investment), are likely to face a financial loss from 0.5% to 2%. This is a troublesome news for landlords.
• Those who wanted to purchase property in London, can have smile on their face as house prices in London are about to dip. This is a good news for those who wanted to invest in London property. This will also restore the grip the British capital has been losing among investors for the last couple of years.
• But you should not keep your investment plans or vision limited to London property only. Thanks to the massive house price rise in other towns like Manchester, Liverpool, Birmingham, etc. These towns have seen 10% to 17.5% house price growth. Even many investors have now started attending property auctions in these areas of the UK.
What’s the Best Advice?
2018 is all set to be a good year for those who plan on attending house auctions for buying a house in London. But it could be slightly tough for landlords. Thanks to Brexit uncertainty and volatile house prices. Therefore, you are left with no choice but to get in touch with experienced property investment agents in London.