With the amount of confusion and hear-say over Brexit currently plaguing every newspaper, headline and social media platform, it is no wonder that many people and property investors are beginning to panic about the UK property situation post Brexit. We are going to hope for the best throughout this article and chose to look at the situation in a ‘glass half-full’ kind of way.
Whilst hope in itself is probably not the best investment strategy, it is helpful for all investors, including that of the property sort, that the best investors realise potential opportunities, in which ever shape or form they may come in. Thus Brexit, and the fallout of it, should be seen as an opportunity, which, if used in the correct way, must not be passed up on simply due to fear of the unknown.
This then raises the questions of which aspects of property investment have the most hopeful prospects in the aftermath of Brexit.
There is one main, rather obvious aspect that is able to provide an answer to this question; the UK’s tertiary education sector, which attracts high volumes of students from all around the world and is one of the best places to invest in student accommodation. In respect of this, it rather makes the number of EU students look tiny in comparison with the students that travel from all the other parts of the world to study in the UK’s educational institutions. This won’t change simply because the United Kingdom has decided to leave the European Union. Even if there were to be a reduction in the number of students moving into the UK from the EU, there is still the clear possibility that the shortfall from the EU would be filled by students from non-EU countries. With London, Cambridge and Oxford being the most famous UK University locations, they are also the most expensive, and this will remain to be the case, despite the post-Brexit situation.
For property investors looking to invest in property pre-Brexit, if you want to maintain as much security as possible, student housing is arguably the best place to start. With places such as those mentioned above being some of the most expensive in the country, this may not seem too appealing at this time of uncertainly, but there are places in the UK such as the Midlands and the north of England that also have a number of very highly regarded universities, of which the students are looking for more affordable accommodation, which can create higher yields for landlords.
Therefore, rest-assured, regardless of the post-Brexit outcome, the UK will remain to attract a plethora of students from all over the world, all of which will still need accommodation to live in. With more students demanding a higher standard of purpose-build student accommodation, property in this area could well be a particularly good investments for anyone looking to expand their property portfolios post-Brexit.