Monday, June 13, 2016

Property Bonanza On Brexit Win

Despite dire warnings from Project Fear, about a collapse in property prices, it transpires that international property investors are poised to “pile into” the UK snapping up office blocks, land and luxury homes if Brexit comes to fruition.

For why?

Theoretically, according to experts, sterling will fall thus making property cheap for international investors.

Guy Grainger, head of Europe, the Middle East and Asia for JLL is quoted by the Telegraph:
This is the big irony of the leave campaign – which is anti any foreign influence. In the event of a Brexit we may see a price correction in property and a fall in sterling which opportunistic international investors will view as a chance to pile in.” 
A recent report from the Royal Institute of Chartered Surveyors also showed that 80% of their members believed that the fear of an unknown future has held back investment flows. This, combined with high property values in the UK, has created pent up demand ready to react to a price correction.

In other words it is the uncertainty that is currently negatively impacting the economy, not the possibility of Brexit.

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