Posts with tag: EU

Weaker pound making buy-to-let attractive to UK expats

Published On: September 7, 2017 at 9:41 am

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Categories: Finance News

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The fall in the value of the pound following the decision to leave the European Union over a year ago has in turn made the UK a cheaper location for overseas-based property investors.

As a result, a growing number of UK expats are choosing to invest in Britain’s buy-to-let market.

Falling Pound

During the past 12 months, the pound has fallen by almost 15% against the Euro. This means that buy-to-let investors based abroad now get more for their money when purchasing property in Britain.

Nigel Pascoe, Director of Lending at offshore bank Skipton International, observed: ‘We are delighted to have been able to help so many British expats secure UK properties and achieve their investment aims. Capital growth in UK property has been strong over the past few years and buy-to-let remains a very popular long-term investment for British expats.’[1]

Weaker pound making buy-to-let attractive to UK expats

Weaker pound making buy-to-let attractive to UK expats

 

To the end of May 2017, Skipton International recorded more than double the value of enquiries for expat mortgages, in comparison to the same period last year. This included a rise of 124% from UK expats in the UAE, a 145% increase from those in Switzerland and 175% from Britons in Hong Kong.

Continuing, Mr Pascoe said: ‘Many British expats who had been considering investing in UK property made the most of the devaluation of Sterling to use foreign savings. However, we must attribute the majority of growth to our team and the excellent levels of service they offer all our customers, for mortgages and for offshore savings.’

 

 

 

 

[1] https://www.landlordtoday.co.uk/breaking-news/2017/9/weakmakes-uks-buy-to-let-market-more-attractive-for-british-expats

 

 

How has the Brexit vote affected the housing market?

Published On: August 17, 2017 at 10:11 am

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Categories: Property News

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The most recent data from eMoov.co.uk has revealed how property prices across the UK have been affected, both positively and negatively, since the result of the EU referendum.

Findings from the report reveal that house prices across districts that voted to Leave the EU have risen by 5.65% since June last year. This was compared to only 4.04% across those regions that voted Remain.

Falls

Though both sides have seen periods of house price decline, of the 13 Remain regions to see a fall, prices have slipped by an average of -4.40%. This was compared to only -1.94% in the 14 Leave districts to experience falls.

Remain regions feeling the largest Brexit blues are the City of London, Western Isles and the City of Aberdeen, with prices here falling by -20.31%, -16.00 and -9.95% respectively.

For Leave voters, the largest falls were seen in Pendle, Sunderland and Ribble Valley. Since the Brexit vote, prices here have seen falls of -6.27%, -4.21% and -3.94% respectively – much lower than the highest falls in Remain regions.

Growth

On the other hand, the UK as a whole has seen an annual increase of 4.9% in house prices since the decision to leave the European Union. 159 Leave regions have seen house price growth over the UK average.

The pick of these regions were Tendring, Copeland, Maldon, West Somerset and Rutland. Values in these regions saw rises of 13.11%, 12.86%, 12.77%, 12.62% and 12.36% respectively.

Only 44 Remain districts have seen house prices exceed the UK average annual growth figure. The highest increases were seen in Orkney Islands (27.87%), Kensington and Chelsea (12.77%), Winchester (12.30%), Exeter (10.93%) and the Cotswolds (10.93%).

How has the Brexit vote affected the housing market?

How has the Brexit vote affected the housing market?

Defiance

Russell Quirk, founder and CEO of eMoov.co.uk, observed: ‘Although there will be some homeowners on both sides of the Brexit coin feeling a little blue due to small pockets across the nation seeing property values fall, there have been many areas for both Leave and Remain majorities that have defied the prediction of a market decline to enjoy explosive growth rates.’

‘On the whole, it would seem the Leave majorities have the most reason for a Brexit birthday bash, but the bigger picture isn’t which way an individual may have voted, or even the majority outcome in that particular area. A year on from the vote itself, and although formal proceedings are still being ironed out, the UK property market has remained one of the safest investments one can make into bricks and mortar.’

Concluding, Quirk said: ‘There is no doubt that the market wobbled because of the uncertainty surrounding our departure from the EU, however, an annual increase of nearly 5% nationally is a very healthy growth rate for a market that hasn’t been firing on all cylinders. This growth should put any fears of a market crash to bed and stand us in good stead for the remainder of the year, with prices already bucking their downward monthly trend and starting to creep back up.’[1]

[1] http://www.propertyreporter.co.uk/property/where-are-the-biggest-house-price-climbers-since-the-referendum.html

 

 

May Chooses Hard Brexit in Crucial Speech

Published On: January 18, 2017 at 9:37 am

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The Prime Minister, Theresa May, has chosen a hard Brexit, according to the lead European Parliament negotiator on Britain’s exit from the EU, following her crucial speech yesterday.

Guy Verhofstadt insisted that the country has “chosen a hard Brexit”, after May warned European leaders that the UK is prepared to crash out of the EU if she cannot negotiate a reasonable exit deal.

The Prime Minister told EU counterparts that any attempt to inflict a punitive outcome on the UK would be an “act of calamitous self-harm”, as the country would then slash taxes to attract companies from across the globe. Her one-hour address intended to spell out the UK’s negotiating strategy.

Although May said that the UK could be the EU’s “best friend” if Article 50 talks go well, she said she is prepared to walk away.

“And while I am confident that this scenario need never arise – while I am sure a positive agreement can be reached – I am equally clear that no deal for Britain is better than a bad deal for Britain,” she insisted.

May Chooses Hard Brexit in Crucial Speech

May Chooses Hard Brexit in Crucial Speech

Eurosceptic ministers and backbenchers were quick to praise May, although her remarks were met with criticism from Verhofstadt, who argued: “May’s clarity is welcome, but the days of UK cherry-picking are over.”

He also gave a tough response to May’s point about business: “Threatening to turn the UK into a deregulated tax haven will not only hurt British people, it is a counterproductive negotiating tactic.”

Verhofstadt urged the Prime Minister to remember the 48% of Britons who voted to remain in the EU.

Speaking at Lancaster House in London, May committed to give both Houses of Parliament a vote on the final Brexit deal, which caused the pound to soar, although Downing Street was clear that the alternative to a negotiated deal would be defaulting onto the higher tariffs of World Trade Organisation rules.

Setting out the Government’s 12 priorities for Brexit negotiations, May made it clear that the UK would:

  • Take back control of borders, arguing that record levels of migration had “put pressure on public services”
  • No longer be under the jurisdiction of the European Court of Justice, as “we will not have truly left the European Union if we are not in control of our own laws”
  • “Explicitly rule out membership of the EU’s single market”, because it is incompatible with migration controls
  • Not stay in the customs union, but try to strike a separate deal as an “associate member” to make trading as “frictionless as possible”
  • Not be required to “contribute huge sums to the EU budget”, but simply pay towards specific programmes
  • Seek a “new, comprehensive, bold and ambitious free trade agreement” with the EU, and build trading relationships with countries beyond Europe as part of a “global Britain” strategy

The Prime Minister also said she wanted to secure the rights of the three million-plus EU citizens living in the UK, suggesting that “one or two” countries, thought to include Germany, had refused to negotiate an early agreement over the issue.

She said she would accept a phased process of implementation of the Brexit agreement after 2019, but not an unlimited transitional deal that could push Britain into “permanent political purgatory”.

Calling for unity in the UK, May said: “Because this is not a game or a time for opposition for opposition’s sake; it is a crucial and sensitive negotiation that will define the interests and the success of our country for many years to come. And it is vital that we maintain our discipline.”

So what will May’s hard Brexit strategy mean for the high number of European students living in the UK?

Danielle Cullen, the Managing Director of StudentTenant.com, warns: “There is great concern surrounding Theresa May’s comments on a hard Brexit today and leaving the single market, which includes the free movement of people.

“European students bring huge value to our economy and culture, and still no comment has been made on how they will be looked after. We just sincerely hope the Government reaches the early deal the Prime Minister proposes surrounding the rights of EU citizens living and studying in the UK.”

UK residential market to be strong throughout Brexit process

Published On: November 2, 2016 at 10:14 am

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Categories: Property News

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New analysis has revealed that the British housing market is expected to stay strong and active as the process to leave the EU completes.

Of course, turbulence is expected, but the latest forecast from real estate firm JLL suggests that there will still be moderate growth. It is thought that the residential market will pick up in earnest from 2020.

Brexit process

Article 50 is expected to be enacted by March 2017, with the country due to leave the European Union in 2019.

In a statement, the firm said: ‘Demand will be undermined in the short term by uncertainty and a more subdued economy while supply issues will exacerbate, lending support to prices. The perennial issue for the housing industry remains supply and we are pleased that there seems to be fresh impetus in this regard.’[1]

‘The big question, however, is whether policy initiatives target short term supply improvements, or look beyond the immediate horizon to create lasting, long term solutions,’ it continued.[1]

Forecasts

JLL predicts growth of 0.5% across Britain in 2017 and 1% in 2018. Growth is then expected to rise to 2% by 2019, 4% in 2020 and 5% in 2021. There are however, differences by region.

Scotland is forecasted to be flat during 2017, then record growth of 1% in 2018, 2% in 2019, 3% in 2020 and 4.5% in 2021. Wales is expected to see less growth, but catch up by 2020. Prices in the country are predicted to fall by 1% in 2017, rise by 0.5% in 2018, 3% by 2019, 5% in 2020 and 5% in 2021.

Neil Chegwidden, head of JLL residential research, believes the outlook for the property market is driven by the widespread positive attitude being adopted within Britain. He notes: ‘Much will depend on the trade agreements negotiated, but with greater certainty the economic outlook should brighten along with consumer and business confidence as we head in 2019.’[1]

‘We expect the UK housing market to be more subdued over the next two to three years. However, it will remain reasonably active with little chance of meaningful price corrections. Assuming Brexit negotiations are not too detrimental, we could see a rebound in London housing markets in 2020, before the rest of the country follows.’[1]

UK residential market to be strong throughout Brexit process

UK residential market to be strong throughout Brexit process

House building slowdown

Continuing, Mr Chegwidden said that house builder activity could drop from its current rate. ‘Although levels of new housing delivery were still woefully low prior to the referendum at least the direction of travel was positive and encouraging. This will now fall back again. We are predicting England starts to drop to 134,000 units next year.’[1]

‘In London, we expect the house building slowdown to be more marked. Not only is London’s economy more vulnerable to Brexit but the housing market is also more reliant on investors, both domestic and international, and is hence more susceptible to buyer confidence,’ he added.[1]

The report also shows that the forthcoming five year UK economic outlook is uncertain, with much depending on the nature and details of Britain’s exit from the EU. JLL said it assumes there will be a ‘hard Brexit’ with access to the single market disregarded.

However, the statement concludes by saying: ‘Despite this, the economic prognosis is not too detrimental for the UK. There is clearly downside risk to this quite benign outlook, if trade agreements and financial sector passporting rights are not favourable. However, this base assumption also implies that there is significant upside potential too, so the economy could prove more robust next year and could also expand faster thereafter.’[1]

[1] http://www.propertywire.com/news/europe/uk-housing-market-expected-strong-active-throughout-brexit-process/

 

Estate agents told to be bold following Brexit

Published On: June 30, 2016 at 11:38 am

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Categories: Property News

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The managing director of the oldest estate agent recruitment consultancy in the UK has told employers to hold their nerve after Britain voted to leave the EU.

Anthony Hesse’s, MD of Property Personnel, made the comments following a survey of recruitment intentions carried out by the Chartered Institute of Personnel and Development.

This survey suggested that 48% of members believe it is far too early to tell what impact a Brexit would have on the sector.

Historic decision

Mr Hesse said, ‘after a historic decision like this, hasty knee-jerk responses are the last thing the industry needs. It’s important that UK estate agents don’t feel bounced into taking decisions with long-term impacts they may live to regret.’[1]

‘Brexit is more of a process than an event – so the immediate impact will be limited, because any major changes will take some time. As a result, employers need to hold their nerve and consider any next steps carefully,’ Hesse continued.[1]

Estate agents told to be bold following Brexit

Estate agents told to be bold following Brexit

Plans

Hesse indicated that he was more concerned at further results from the survey that show 54% of members have no post-Brexit plan in place. 26% respondents said that they were actively developing one.

‘Issues such as employment law, immigration and the ability of employers to bring the right skills they need into their business were central themes of the EU referendum campaigns-so estate agents need to plan accordingly, Hesse explained. It’s important to remember that our existing labour market already strikes a good balance between providing flexibility for employers and employment rights for workers. Currently, employers can bring in skilled workers from outside the UK to help support business growth and address labour shortages. It’s absolutely crucial that any renegotiation of our relationship with the EU takes this into account.’[1]

Concluding, Hesse noted that, ‘ultimately, we need to ensure that UK estate agents continue to recruit the best people to fill the jobs available. Access to the right talent is absolutely vital to ensure sustainable growth and prosperity-not only for the sector, but the country.’[1]

[1] http://www.propertyreporter.co.uk/property/estate-agents-urged-to-hold-their-nerve-post-brexit.html

Brexit will badly hit house prices-Chancellor

Published On: May 9, 2016 at 10:39 am

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Categories: Property News

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With the vote on EU membership moving ever closer, Chancellor George Osborne has used house prices as a pawn in his latest plea for voters to back the ‘Remain’ campaign.

In a television address, Mr Osborne claimed that if the UK left the EU, than there would be a, ‘significant hit,’ for property prices.

Costly

Speaking to Robert Peston on ITV, Mr Osborne said, ‘you will see the analysis we (the Treasury) will do, but I’m pretty clear that there will be a significant hit to the value of people’s homes and to the costs of mortgages. That is one example of the kind of impact, economic impact, that we get from leaving the EU.’[1]

‘I think it’s very important for people to think about that and we are going to be producing some more research on that in the coming weeks. It’s already clear from the Treasury analysis that for example, there would a significant shock to the housing market, that would hit the value of people’s homes, that would hit the cost of mortgages,’ he continued.[1]

Osborne also noted that, ‘we’re doing the work on it now but the emerging Treasury analysis backs up what you are hearing from major banks like Virgin Money that the value of people’s homes will be affected and people trying to get on the housing market would be hit because mortgage costs would go up.’[1]

Brexit will badly hit house prices-Chancellor

Brexit will badly hit house prices-Chancellor

Increases

Just last week, the chief executive of Virgin Money, Jayne-Anne Gadhia, observed that a British exit from the EU would cause house prices to slide, but push interest rates up.

Gadhia said, ‘my personal view is that property prices would be likely to come down, as inward investment, particularly in London, is less available. The risk on a Brexit is I think that property prices come down and interest rates go up.’[1]

Noting that buy-to-let lending would dip following the passing of the stamp duty surcharge deadline, Gadhia also said she believes demand for owner-occupier mortgages would stay strong-if Britain stays in the EU.

‘We are expecting a market of about £240bn this year if the referendum vote is to stay in and there is no disruption that way. That is quite substantially higher than our original expectation of £220bn, the mortgage market is definitely flourishing,’ Gadhia stated.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2016/5/brexit-would-mean-significant-hit-for-house-prices-warns-osborne