It’s been a roller coaster over the last twelve months for Britain. And it may remain one, at least for some parts of country. Investors, however, seem to not mind any of it too much.
In less than one year the UK has managed to reinvent investment property taxation, decide to leave the EU, change head of state, start its departure from the EU and call for a new election.
Buy-to-let tax changes: The investor’s guide to changes happening in April 2017
It might therefore be safe to say there’s a lot going on in Britain at the moment.
For investors, some of these changes bring long-lasting effects with them that may affect their financial strategies significantly for some time to come.
With the election campaign now under way (although, bear in mind only for another seven weeks), one of the biggest questions is how central the UK’s housing market will be in an election that seems to be consumed by old Brexit-grudges and new agenda-enemies.
And whilst experts were quick to speak up and announce that housing needs to be a key point in any discussion about the country’s future, the even stronger indicator for this are probably investors and consumers themselves.
A new research has found that 2.21 million investors across Britain have started 2017 with a bigger appetite for risk. They’re seeking new ways to invest, and they’re aiming to do so in the long-term.
The election itself is forecast to only have very little impact on the single investor and the continued strength of the UK’s property market. This estimate appears bold at first, but becomes more realistic when put into context.
Over recent years, the UK has experienced at least three major political changes that could have impacted the property market negatively: Scotland’s Independence Referendum in 2014, the changes announced to Stamp Duty charges in 2015 (and it coming into effect in 2016) and the EU Referendum in 2016.
Three major events. And whilst some may argue that some of the events were bigger than others, they all have one thing in common: investor interest remained stable.
So if we only were to look back to find out how investors will deal with the snap General Election, one could quickly jump to one conclusion: nothing will change. And they’re right to think so. At least to some extend.
Build-to-rent developers and investors make three year tenancies the norm
What they might also have to bear in mind, however, is that what lies ahead of us, a possible change in the way Britain is governed – and therefore how the country does business – could be a big change. And it means that there are probably more political and economical twists waiting for the country’s investors over the next couple of years.
However, if there is anything we should definitely learn from recent history, it’s that there are always opportunities for investors, they just ought to be managed timely and strategically.
