14 Feb

UK property market may benefit from Brexit

UK property market may benefit from Brexit

Property markets across the UK could offer strong investment opportunities as an alternative to London following Brexit.

A report from analysis firm Kames Capital concluded commercial real estate in London could be impacted by Brexit in the short-term, but the rest of the country could be in a good position to offer good returns for property investors.

David Wise, investment director of Kame’s property team, explained locations outside of the capital could benefit as investors look for less volatile opportunities.

“At present, regional markets are showing no signs of slowing. Tenants are signing new leases and paying modestly higher rents, and even if this were to change, we are better insulated than competitors as we don’t need to be seeing rental growth to deliver attractive returns,” said Mr Wise.

He added: “London is the big risk when it comes to Brexit, although it was already a long way through its rental cycle and was probably due a slowdown anyway. The depreciation of Sterling has and will underpin the London market so returns will not fall off a cliff, but it will likely be a market that it is better to be out of for the next year to 18 months.”

In another report from M&G Real Estate, researches have concluded Britain’s economy is set to be resilient despite Brexit concerns, especially with a positive GDP of 0.5 per cent predicted.ADNFCR-1222-ID-801832352-ADNFCR

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