Brexit | House Prices | Property Market – My Predictions As A Real Estate Investor & Landlord

Brexit | House Prices | Property Market – My Predictions As A Real Estate Investor & Landlord

The United Kingdom is part of Europe, but
it has decided to leave the European Union. Since the result of the EU Referendum, both
the Government and Parliament have been in a state of unrest (to put it mildly). But
at last, thankfully, a new Prime Minister has been appointed and Theresa May has selected
her new cabinet, including a new Chancellor and a new position of Secretary Of State for
leaving the EU, or in other words, Brexit Secretary. In addition, the Bank of England
have also announced that The UK Interest rate will remain at 0.5%. As an investor and landlord
I need to pay attention to current affairs and adapt and plan as best as I can for conditions
that I cannot control, and in this video I will give you my predictions for the UK property
market over the next 12 months. Hi, I’m Andy Walker from where
I blog online about my journey as a property investor and landlord, sharing what works
for me and what doesn’t, to help you start or expand your property portfolio. During the lead up to the EU Referendum, there
was quite a bit of scaremongering from both the Leave and the Remain camp . Some politicians
stated that leaving the EU could cause a recession and that house prices could fall 10-18%. Now,
having already lived through 2 recessions myself and having done some research, I know
that they are caused by the collapse of financial institutions when they overstretch themselves,
and by a high increase in interest rates . I don’t see any signs of this and therefore
I don’t believe that the UK will enter into a recession – recession meaning widespread
decline in the GDP, and in employment and trade for more than 6 months. The UK leaving the EU doesn’t change the
fact that the UK has a lack of housing. There is still a need for more affordable homes
because demand is outstripping supply. In my view, the only way we can bring property
prices down, without entering into a recession, is to build more houses! If there are 10 new
homes and 11 people are wanting to buy them, prices will rise. If there are 10 new homes
and 9 people are wanting to buy them, then prices will fall. It doesn’t get any more
complicated than that. Now, Brexit has caused uncertainty, people
don’t know how the financial markets are going to perform in a year, 2, 5 or 10 years
from now. So I expect to see a stagnant property market for a while. I don’t believe property
prices will fall, but I also think that we won’t see much growth over the next 12 months.
We have already seen some growth for this year between the months of January and May,
and at the end of the year I would expect to see an average growth of around 4% for
the year 2016. I will make a note in my diary to check this early in the new year. I’m guessing levels of uncertainty are going
to remain until the government starts the Article 50 process and the market will probably
remain volatile until the divorce from the EU is complete. (This is not a cheery subject) Now, uncertain times is a good time for investors,
because when things are more certain, everybody wants to invest and you don’t see so much
growth, so uncertain times can lead to big gains in the long term. People who act and
take action in uncertain times, are the people who gain the greatest rewards. In summary, I don’t expect that much will
happen with the property market in the next 12 months. If things do change, I would expect
it to lean more on the positive side as an average for the whole of the UK. For me, it’s
business as usual. I will continue to provide good homes for my tenants and I will continue
to buy properties when I have the funds. I don’t particularly think it’s a good time
to buy, renovate and sell, unless you have a lot of experience in this area, as I don’t
foresee a rise in the market in the short term, but if you have the funds available
and you want to buy and hold, I would say that this is a great time to buy.
Only time will tell if my predictions are correct. What are your thoughts? Please let
me know in the comment below as I would be interested to know what you think. If you
found this video useful or my predictions interesting, please like and share, and if
it’s your first time visiting this channel, definitely subscribe so you don’t miss any
of my future videos which will all be geared towards helping you start, or improve, your
property business. Thank you so much for watching, and I will see you in the next video, bye
for now. Aaaannnnnnddddd Take Two! How have I pulled a muscle? I need a lie down after that!

11 thoughts on “Brexit | House Prices | Property Market – My Predictions As A Real Estate Investor & Landlord

  1. Nice tips, would love to invest in property myself but the challenge of getting the deposit down for a 19 yr old like me is off putting lol.

  2. Sorry but the property bubble is already tanking, it started 9 months ago in central London. Now everyone is blaming brexit despite the big slowdown before it. Anyone who thinks these record high property bubble prices are sustainable needs their head read. The house price rises weren't because of rising wages because they weren't rising, it was the mass return to cheap credit, irresponsible lending and fraud.

    The buy to let sector is full of so much fraud it is one of the most vulnerable parts of the economy. How many landlords have appropriate investment vehicles for their interest only mortgages, not many. Higher taxes, more lender enforcement, Bassil III and a property crash is going to wipe many landlords out.

  3. Great vid, thanks. Agree on the housing shortage and opportunity in the face of uncertainty remarks. For me the important question is if we will see inflation ala Mike Maloney and Peter Schiff or deflation ala Harry Dent and Martin Armstrong in the coming decade? I'm leaning toward deflation which means property prices will come down in real terms. Your thoughts please?

  4. Chinese are buying up your properties
    Now that it is a buyer's market, can you give a bit of insight on how you're reacting to this?

  5. I like your video and your insight is very helpful. I have recently purchased a property but I worried house prices will be affected negatively once article 50 is triggered and after say two to three years of brexit negotiations and investment in the UK starts easing. Do you think prices will start to drop then?

  6. The slow movement in property prices is likely to make it very difficult for a "newbie" who may be thinking of entering into the property investment market. Historically, the majority of investors have profited during periods of rapidly rising prices in desirable areas.

    Although I don't have the experience qualify my logic, I would argue that money could be made, regardless of movement in prices however, the margins may be low and even then, it may only be possible to achieve a profit subject to some DIY experience and access to cash (i.e. not borrowing from a bank).

  7. Andy….are you less positive about property as an investment, or has something impacted on you since this video was uploaded? I subscribed this week and read on your home page, "new video's every week"!…..nearly 3 months since your last video!!!

    At the very least you could add a message in your web page to keep your subscribers informed.

  8. Loving your blog Andy , fantastic bit of fresh air and some reality . Very clear , very informative. Love the anti brexiteer argument which was just that your wrong . I think undoubtedly less immigration should mean the housing market goes down slightly . However not much appears to happening at the min , except those interest rates 😩

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