The UK’s property market has always shown resilience regardless of black swan events. But while Brexit might feel like a distant memory, we explore why recent events show property is an even stronger investment despite the decision to leave the EU.
House prices continued to rise
In the months following Brexit, house prices in the UK plateaued around the £215,000 mark but after just 12-months prices started to creep back up. By June 2017, prices had increased 4% year on year. Despite Brexit uncertainty, the overall trend was for house prices to continue to rise – albeit marginally by August 2019.
A 2020 survey by bridging loan providers, Market Financial Solutions (MFS) also found that UK property investors are still keen to buy property. In fact, of the 750 real estate investors they questioned, 79% planned to buy more property. More than half (60%) were also confident that UK house prices would rise. Significantly, 51% didn’t think Brexit would have any impact on property prices.
MFS also identified which regions were the most attractive to potential investors. Outside of London, the South West was one of the hotspots with a number of investors saying it was a region of consideration. At Acorn we’ve long championed the benefits of the South West which combines cosmopolitan towns and cities, rural idylls and stunning coastline.
How changing attitudes are fuelling the market
Brexit may not have been the predicted outcome, but it didn’t send the market crashing. It’s also crucial to factor in the aftereffects of COVID.
Significantly, property searches now focus on homes with outdoor space with key search terms including ‘rural’ and ‘secluded’. People are also searching for annexes, which are ideal for extended families or ripe for home office conversion for those taking a hybrid approach to work.
These changes are more than just a reaction to lockdowns, coupled with the realities of Brexit, it now means buyers are taking a holistic view of their property needs. Part of this means focusing on the long-term – notably, figures for May 2021 show that flats and maisonettes had the lowest annual price increase (just 6.5% compared to an average of 10%).
With all this in mind, we believe properties that fulfil buyer demands make a stronger than ever investment. For us, meeting those demands is business as usual as we have a long history of focussing on sustainability and the construction of desirable and aspirational homes. For more information about what makes an Acorn home so special, and how we’re building for the future, take a look at our Acorn Green hub and our Different by Design ethos.