According to forecasts made by Colliers International, Britain’s property market will be boosted by global uncertainty in 2017.
Prime Minister Theresa May is set to trigger Article 50, and therefore start the country’s negotiations to leave the the EU, before April, and the real estate advisor warned that Brexit fears could affect the market.
However, Colliers International, also added that investors would see through that uncertainty. It said that property volumes are set to recover in the coming year and will exceed £50bn.
On top of that, the advisor explained that the liquidity and transparency available in the UK will attract new money from institutions investors. Coincidentally, political surprises elsewhere, like the election of Donald Trump, could strengthen the UK’s stand as an investment safe haven.
“The UK remains one of the most transparent and active places to do business, and currency arbitrage by international investors is opening up opportunities for new and greater investment which will no doubt help to drive the UK real estate market in 2017,” said Colliers UK and Ireland chief executive Tony Horrell.
However, the firm’s associate director of research and forecasting Martin Mahmuti, cautioned that when it comes to returns, challenges will likely remain throughout the year.
“Total returns in 2017 will show a very modest recovery over the 2016 collapse, but will struggle to breach two per cent,” Mahmuti said.
“Rental growth for all property will be flat and the minus three per cent negative capital growth trend seen in 2016 will be replicated in 2017.”