Now that a date has finally been set, what will be the Brexit effects in real estate? After several moments of uncertainty and hypothetical forecasts, which we have already addressed before, we can find concrete answers!
For this reason, we have decided to produce an article to dispel any doubts on the Brexit question. So, we can start!
According to the main experts in the field, Brexit, first of all marks the end of the uncertainty on various fronts. The immediate effect will be on the relaunch of trades. However, this will only happen if there is a real agreement with the European Union. Otherwise, the situation would be diametrically opposed. There would be an immediate weakening of the currency, to the point of making the real estate attractive to foreigners. The effects? A market based solely and exclusively on foreign investors. The portfolios that should benefit from it are mainly Arab, Russian and Far Eastern portfolios.
The unlocking of the British market will not only involve the real estate, but it is this sector that will get the best results. Just think that, in general, the contracts of sale, in stalemate for months, will suffer a peak. However, we must not rule out the possibility that the real recovery starts in 2021. Despite this, prices will certainly increase by 5% on an annual basis. For this reason, potential investors, are well guarded from wasting time!
The pound? How will he behave? This is the dilemma that is afflicting many. Will you have to buy ? What will be the relationship with the euro?
Again, the forecasts seem to be in favour of the pound. The currency should strengthen in parallel with the elimination of political uncertainties. However, since prices are already quite high in London, it is assumed that this change could channel demand to other famous cities. These include Liverpool, Manchester, Birmingham. In the British capital, on the other hand, the average rental price will rise by 18%, and in the rest of the United Kingdom by 13%. An opportunity not to be missed if you are interested in buying a property in London.
At the heart of the British question is the consequences that will be felt by foreigners in terms of the tax burden. Although we do not yet have a complete picture of the situation, it is certain that there will be substantial changes.
Stamp duty will affect 70,000 purchases, generating an annual revenue of 140 million euros.
But how is this tax calculated? Currently the weight it covers is :
The real estate sector seems to be particularly involved in Brexit’s sphere of action. But if you want to know more, all you have to do is stay up to date on our portal!
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