Properties Value: Impact Of Brexit On UK
According to a report from the international property agents, out of all properties in the UK, farmland values would be most affected by Brexit.
As there will be the removal of EU subsidies which will lead to about 20% loss of value.
These international property agents believe that the adverse influence on the
commercial farm will go beyond a decrease in high streets and shopping malls.
That would lead to closed shops and decreasing values of the rental.
Notwithstanding, in five years time, the north and Midlands will have the strongest market for the residential property.
Despite the stronger house prices for properties value in the London market, the rental yields in the areas for owners are likely going to be lower than those for properties in Birmingham and Manchester.
Based on the report, it has also been predicted that the earning of the homeowners investing in buy-to-let properties in north-west will be about 8.4% annual total return, which combines both rent and capital value increases.
This is higher than the 3.9% annual total return that will be expected for London investors.
However, we believe that an annual fall of about 3.6% will occur in the values of commercial farmland.
In the next 5 years and urban logistics will be the fastest-developing area of the property market.
Within the same time at an estimated increase of 10% annually.
Notably, urban logistics refers to warehouses that are in a position which strategically send products bought over the internet to the users.
Foreign Landlords in The EU
Through direct payments from foreign landlords in the EU, farmers get profits of as much as 60%, which increases to 90% for a few livestock hill farms.
After Brexit, rather than paying subsidies for the number of livestock farmers work and land.
The subsidies will go into the hands of owners of lands as well as farmers who are capable of offering environmental advantages, although there is still a lot to be decided on this.
Properties Value Might Become Lower
Emily Norton, who is the head of agricultural research at Savills, noted that the values might become lower for bare commercial land which is naturally known to have low capital potential.
Returns will be the only thing expected in areas where there is no chance of earning extra public money.
Resultantly, high levels of management skill will become a necessity.
While the demand for them will be high, there will be a reduction in prices
In the last ten years, farmland has yield more returns than residential properties in highbrow central London.
However, the Brexit vote, which took place in June 2016, has changed everything.
To know more about property investment in the UK after Brexit, Reneza is always available to provide answers to your questions.
And also use advanced technology to help you get the most out of your investment.