Since the announcement of the Brexit referendum vote in 2016, there has been a certain amount of uncertainty over what the future holds for the UK in a range of areas including property developments and investments. There have been concerns from both the public and those within the property industry that Brexit may interfere with potential projects due to international funding and interest in buying property being disrupted through changes in regulations or people’s unwillingness to plough money into a country going through such drastic changes.
However, although these are very valid concerns, it appears that certain areas in the UK do not seem to have been impacted by overhaul. Although cities such as London have seen a drop in both property prices and volume of sales over the last few years, several other cities around the country have been experiencing an above average price inflation since 2016. Sixteen cities including areas such as Birmingham, Leicester and Manchester have not experienced any of the downward trends that have been identified in London and have in fact seen substantial increases in property prices instead. Manchester has experienced a massive 17% increase in property prices since 2016 and shows no signs of slowing down, with 5.8% of that figure coming from 2018 alone. It appears that Manchester’s attractive standard of living with affordable housing and an array of employment opportunities is dispelling any Brexit doubts that people may have and not deterring people from buying and investing in Manchester’s property market and as well as other parts of the UK.
In an array of cities within the UK, including Manchester, it has been reported that the UK property market saw 18 office investments under offer in the first quarter of 2019, with lots of this money hailing from foreign investors. This displays a marked increase when compared to the same time period in 2018 when there were only 6, showing progression when it comes to investing in UK property. These figures indicate that despite all of the Brexit uncertainty, foreign investors are still placing great value on the British property market as it is reported that approximately 80% of all property investment in 2018 came from overseas source, most notably from Asia and the Middle East.
Jason Harris-Cohen, from Open Property Group, one of the UK’s leading professional house buyers who complete a lot of work in Manchester, states that ‘in our experience, the market in Manchester and the majority of Northern regions has been fairly buoyant.’ He also went on to say how ‘we are encouraged with the backing of the Northern Powerhouse which is giving our great cities the power and resources they need to reach their huge untapped potential’ and that it appears that investors are turning their attention away from the capital and onto cities such as Manchester due to the ‘higher yields’ that are achievable in these particular areas.
It is undeniable that Brexit has caused and continues to cause a certain amount of uncertainty in a domestic and international sense over an array of different issues including the property market. However, it appears that when it comes to foreign investment and a rise in profitability, particularly in cities such as Manchester, the impact of such a momentous decision for the UK has not been as severe as some people might have feared. Manchester’s property market is thriving and if the UK’s property trends continue to form in the same way, it appears that the property market in Manchester will continue to thrive, meaning great things for property jobs in Manchester and the North West in general.
Written by Rachael Gray.
Rachael Gray is a Director at Clifton Gray specialist property recruitment company. Rachael has recruited within the residential property industry for fifteen years. Follow Rachael on linkedin or email rachael@cliftongray.co.uk to discuss current Liverpool and Manchester property jobs, or to find out how Clifton Gray can secure the best talent for your property business.