# To invest or not to invest… that is the Brexit brainteaser Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-10-27 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Invest in British Property Now or Wait and See? Meta Description: As the pound remains weak and UK politics are in flux, discover why now may be the best time to invest in British property. Find out more here. URL: https://financedigest.com/to-invest-or-not-to-invest-that-is-the-brexit-brainteaserhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/image-8-1736844407026-compressed.jpg) - **Pound lingering at record lows** - **British property c. 20% cheaper than before the referendum for buyers with dollars** - **Demand up in September but average stocks on agents’ books close to historic lows (RICS)** With the pound lingering at record lows and UK politics changing by the day, [British buyers](https://www.financedigest.com/what-brexit-mean-for-british-buyers-in-spain.html "WHAT BREXIT MEAN FOR BRITISH BUYERS IN SPAIN") and international investors alike are rightly wondering where the property market is heading. While they don’t have a crystal ball, the experts at [**Property Frontiers**](http://r20.rs6.net/tn.jsp?f=001hZOdGS-H9LbuBwcHF-pzGWjjm-smro7swxMXTBGwfs4DOcfGXLcnDq2nPcWwKki4hPn-6FiDIsDP1cq8s2vR-SFKSWmoCYPnS3zzxAv66_BZtSQd-D5cqxr0Moc2VGiAmuTOp3Oknv5079zRo-8L1KCGUSGwmbm8ge7j6BGBzoSOZOXbSThxvg==&c=kpIHEoX3Tk7OiCvCb0VpUUbhchahPEPa2k7xGQYKJEtIlnJl4OPmQQ==&ch=wrljEPG3QCxVMH_3x2oJB6SHIU-kljVjnwfj1zv2MexloXvL--pxpA==) are feeling increasingly confident in their answer to the question they’ve been hearing most lately: “Should I invest now, or wait and see?” The answer of course depends on your individual circumstances, but the evidence is mounting in favour of moving now. ![Ray Withers ](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/ray-withers-1-1736844406946-compressed.jpg) Ray Withers Property Frontiers **CEO Ray Withers** explains, Brexit is undoubtedly a game-changer, and when the playing field shifts like that, it [creates opportunities](https://www.financedigest.com/grain-and-cereal-crop-market-novel-technological-solutions-will-create-lucrative-growth-opportunities.html "Grain And Cereal Crop Market : Novel Technological Solutions Will Create Lucrative Growth Opportunities") to get ahead as well as potential pitfalls. Some investors thrive on situations like these, hunting uncertainty around the world, while others let themselves be paralysed into not investing at all. I wouldn’t particularly recommend either course, but there is a happy medium.” The clearest reason the UK falls into this category at the moment is [sterling’s recent plunge:](https://www.financedigest.com/sterling-plunges-to-all-time-low-in-scathing-appraisal-of-fiscal-plan.html "Sterling plunges to all-time low in scathing appraisal of fiscal plan") the currency play represents a huge opportunity for international investors. [Heated debate](https://www.financedigest.com/who-seeks-to-take-political-heat-out-of-virus-origins-debate.html "WHO seeks to take political heat out of virus origins debate") about whether the pound will climb, settle, or fall further is pure speculation. It is a fact, on the other hand, that [British property](https://www.financedigest.com/british-property-portal-rightmove-hikes-dividend-after-annual-profit-jump.html "British property portal Rightmove hikes dividend after annual profit jump") is around 20% cheaper than it was before the referendum for buyers with dollars and/or many other currencies, especially those pegged to the dollar (e.g. BHD, HKD, QAR, SAR and AED). Savings of that magnitude may render further gambling – in the form of [delaying an investment](https://www.financedigest.com/ford-delays-spanish-investments-citing-revised-outlook-for-europe.html "Ford delays Spanish investments, citing ‘revised outlook for Europe’") – unnecessarily risky. [Delaying in order to beat](https://www.financedigest.com/hasbro-ramps-up-toy-supply-for-holiday-season-to-beat-shipping-delays.html "Hasbro ramps up toy supply for holiday season to beat shipping delays") the pound could go either way. Delaying in [order to beat the property market](https://www.financedigest.com/computerized-physician-order-entry-market-report.html "Computerized Physician Order Entry Market Report"), however, is very wishful thinking. Every week, more and more statistics confirm the industry consensus that (barring a full-blown recession) house [prices are not going to get any cheaper any time soon](https://www.financedigest.com/portugal-expects-deal-to-disconnect-power-prices-from-gas-prices-very-soon.html "Portugal expects deal to disconnect power prices from gas prices ‘very soon’"), and the fundamentals in most markets still point to chronic undersupply. Last week the Office for National Statistics (ONS) released its latest house price index, which [reports price](https://www.financedigest.com/global-compressor-controllers-market-outlook-2021-pricing-strategy-industry-latest-news-research-report-analysis-and-share-by-forecast-2028.html "Global Compressor Controllers Market Outlook 2021, Pricing Strategy, Industry Latest News, Research Report Analysis And Share By Forecast 2028") increases in the year to August 2016 of 8.4%, up from 8% in July and never dropping below 7% this year. Even the Nationwide index, based on less optimistic survey data (rather than actual registered sales), [reports that the worst monthly](https://www.financedigest.com/whatsapp-bans-2-4-million-indian-accounts-in-july-monthly-report.html "WhatsApp bans 2.4 million Indian accounts in July – monthly report") change since the referendum was a 0.2% increase (in July, just after the vote). Property Frontiers’ Ray Withers continues, In my view, what we have seen in the past few months is a temporary slowdown in a long period of excellent [growth underpinned by strong](https://www.financedigest.com/lego-posts-strong-growth-on-robust-demand-new-store-openings.html "Lego posts strong growth on robust demand, new store openings") fundamentals. This plateau offers a vanishing window of opportunity before prices ramp up again, and even if we get more surprises [next year](https://www.financedigest.com/uaes-adnoc-to-open-swiss-trading-office-next-year.html "UAE’s ADNOC to open Swiss trading office next year") they may not offer anything better. A new RICS survey [reports that demand](https://www.financedigest.com/bone-grafts-and-substitutes-market-overview-highlighting-major-drivers-growth-and-demand-report-2018-2026.html "Bone Grafts and Substitutes Market Overview Highlighting Major Drivers, Growth and Demand Report 2018 – 2026") ticked up in September while average stocks on property agents’ books were close to historic lows. August’s drop in mortgage rates should also [boost demand](https://www.financedigest.com/cancers-and-infectious-diseases-is-expected-to-boost-demand-of-bacterial-antigens-market.html "Cancers And Infectious Diseases Is Expected To Boost Demand Of Bacterial Antigens Market") and support price levels. And whether values increase substantially or not, in a super-low interest world, British rental yields [remain amongst the strongest across many markets](https://www.financedigest.com/flooded-battery-to-remain-top-choice-across-industries-accounting-for-49-0-of-lead-acid-battery-sales-in-2021-future-market-insights.html "Flooded Battery to Remain Top Choice across Industries, Accounting for 49.0% of Lead Acid Battery Sales in 2021: Future Market Insights"). RICS has further identified a “critical rental shortage” in the UK, predicting 1.8m more households will be looking to rent rather than [buy a home](https://www.financedigest.com/us-real-estate-analysis-top-cities-for-retirement-home-buying.html "US Real Estate Analysis: Top Cities For Retirement Home Buying") by 2025, while Countrywide forecasts a 4% increase in rents in 2017 and again in 2018. As the best and brightest of the industry rubbed shoulders at MIPIM last week, congregating under the banner “extraordinary times, extraordinary [returns?” investors](https://www.financedigest.com/asset-management-firms-are-using-ai-to-deliver-higher-returns-for-investors.html "Asset management firms are using AI to deliver higher returns for investors") will do well to remember that there are certainly profits to be had in the UK market and to be wary of dismissing making a move due to volatility. Property is still among the safest and most stable of many asset classes, and now remains a favourable time for those that have cash (especially in different currencies) and are seeking long [term investment](https://www.financedigest.com/what-makes-a-good-long-term-investment-strategy.html "What makes a good long-term investment strategy?") opportunities. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---