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Ever-growing demand for homes in the UK despite Brexit fear

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Due to “chronic” undersupply, there is an ever-growing demand for homes in the UK.

Concerns about Brexit are not deterring South African property investors, with 82% still investing in the UK property market, research has shown. Furthermore, 72% cite Brexit as the catalyst for them to invest in UK property, says Wayne Morris, national business development manager at SevenCapital South Africa.

About 58% of South Africa’s high net worth individuals (HNWIs) – defined as those who earn more than £100 000 (about R1.8 million) per annum – currently invest in property.
Morris says Brexit will be one of the most debated topics to go down in UK history, but a global survey of HNWIs new research has revealed that when it comes to property investment, it isn’t the major concern the headlines would suggest.
Of those surveyed in South Africa, property is the most popular investment product with around three in five (58%) of those who identified as investors currently choosing property.
More than seven in 10 (72%) cited Brexit as the catalyst for them to invest, with “capital growth”, “affordability” and “stable market” all appearing as the common key factors when considering UK property for all those surveyed, Morris says.
“These figures demonstrate that people generally recognise there are bigger factors to consider over Brexit when it comes to which way the UK property market is going to swing. Realistically, it’s the fear and the perception of Brexit that will have any effect rather than the physical act of leaving the EU. 
“Ultimately, if the market were to take a dip after Brexit, seasoned investors will know this would more likely be a catalyst for the inevitable swing back. The property market is a prime example of well-known cyclical patterns, growing through recovery and emerging stronger than previous peaks.”
Morris says it is also important to understand that, due to “chronic” undersupply, there is an ever-growing demand for homes in the UK. Furthermore, property is not a quick purchase or investment so buyers will not realistically be thinking about selling in less than five to 10 years.
“If you’re a property investor, you’re likely to be looking for longterm gains. Either way, the price of your property, providing you did your research properly before buying, is likely to appreciate in the long run.”
The survey was conducted among individuals earning more than £100 000 per year and who live in the UK (55%), Hong Kong (17%), Dubai (17%) and South Africa (11%) – all regions known for their interest in the UK property market.

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