Property  

Brexit is creating opportunities for property

Jamie Johnson

Jamie Johnson

With a chronic imbalance between the supply and demand of UK housing stock, this will be a prudent policy – FJP Investment recently surveyed over 750 UK property investors, and 70 per cent were in favour of the measure.

With such widespread support, the government could go further still and also reduce the tax on first time buyers who have yet to gain a foothold on the property ladder.

After all, the Conservatives have announced that they will attempt to build 1m new homes by the end of this parliament.

They are right to be ambitious; to fundamentally tackle the housing crisis this kind mega-scale housebuilding effort will always be the main challenge.

To achieve this kind of aim, the government will need to encourage the construction industry, and its announcement of £100bn for construction over the course of this parliament is certainly a step in the right direction. 

It is clear that the Boris Bounce has helped reignite positivity in the property sector, with the prospect of Brexit being completed on time engendering additional confidence.

The UK is now amidst an 11-month negotiation period with the EU. Having formally left the union, it has until the 31 December 2020 to strike a new trade agreement.

This will be no easy feat, however, there are reasons why Brexit should not be framed as a negative event.

Investor demand for property is rising, and this explains why Savills anticipates house prices to rise by 15 per cent over the next five year. 

I now look forward to the Spring Budget on March 11, where I hope the chancellor will deliver on his party’s promises, thereby helping everyone — up and down the property ladder — enjoy the fruits of the market’s return to form.

Jamie Johnson is chief executive of FJP Investments