Brexit and The Welsh Market
Friday, January 18, 2019
Brexit - Not so bad?
Brexit - What’s all the fuss about?
Brexit - Winners and losers?
Some possible titles!
Anyway.
After the shenanigans in recent days concerning the proposed Brexit deal and confidence votes in the House of Commons, we could perhaps be forgiven for putting our heads in our hands and hiding in a dark corner. But what does it really mean to the real estate market, particularly the market in Wales?
Investment and development in real estate in Wales has for decades been a safe and steady bet. Sure, there was a blip around 2008 but prices have consistently risen in Wales over the past two or three decades and even with the blip, yields have remained solid over that time. So what do I think the current Brexit situation will mean to the property market in Wales? Well, where in London the market is fuelled by speculators (gamblers if you like) and overseas buyers, investors and developers in Wales have always been profit and/or yield driven.
Whatever happens with Brexit in the short /medium and long term makes no difference to yields. Certain commercial asset classes have not been more in demand for years and the demand for rental property continues to grow. So if your thing is valleys houses for investment, why wouldn’t you take the opportunity to fill your boots while others hesitate? That warehouse that’s let and producing a yield of circa 10% will still be producing that income despite political upheaval. Now is not the time to sit back and watch what others do, it’s a time to seize the opportunity!
Author: Paul Fosh