“We level up across Britain…giving millions of young people the chance to own their own homes, and giving business the confidence to invest across the UK”
- Boris Johnson’s first speech as Prime Minister, July 24th 2019
Succeeding Theresa May after the result of a Conservative leadership campaign earlier this year, Boris Johnson has now assumed the seat of power in the UK, and now faces the monolithic task of resolving the Brexit conundrum before the pledged Halloween deadline date. Tremors of doubt following the vote in 2016 have had somewhat of a negative effect on house prices in pockets of the UK, but what does this mean for the property market overall?
Here are some of the things that Boris has said, and pledged to do with his new cabinet, since he took on the role of Prime Minister. Specifically, with regard to the property market, and what that might indicate to prospective investors.
Northern Rock
In his inaugural speech as Prime Minister, Johnson stated his intention to continue to bolster the funding, influence and infrastructure behind the Northern Powerhouse Initiative:
“It is time we unleashed the productive power not just of London and the South East, but of every corner of England, Scotland, Wales and Northern Ireland”
This is a promising sentiment coming from someone who was previously Mayor of London, as he should have a level of knowledge on the many intricacies of inner-city ongoings, and it is interesting to know that he is seemingly committed to balancing the scales of influence between North and South.
Northern cities such as Liverpool and Manchester are flourishing at the moment with regard to their property market. Both rental yields and capital growth potential are above the national average, and way above London, for example. RW Invest are one of the many property investment companies out in front of this growing trend, offering luxurious accomodation and apartment solutions to the migrating workforce, and investment chances for those looking to root themselves in the area as it grows.
Johnson’s intentions and looking to the future of Brexit
Johnson has a reputation within the media of being known as an avid ‘Brexiteer’ by fellow members of his party, which may be the reason for him winning the leadership race, since Conservative party members wanted a staunch Brexit backer to get them through the turbulence of the coming months.
However, Johnson actually wrote contrasting columns on behalf of leave/remain prior to the 2016 referendum, and has in the past been in favour of the single market. Additionally, he has made it known multiple times in his addresses to the public since inhabiting no.10 that he has every intention of securing a deal before the dreaded Halloween night.
Despite this though, Johnson has committed to delivering based on the result of the public vote three years ago, but that doesn’t need to cause too much concern. It is expected that by 2022, property transactions will increase, and the average house price growth will grow by 11.4% in Greater London, and 16.5% in the North West. Brexit shouldn’t dissuade investors from looking into the UK’s property market if interested, and the market will seemingly not hang around and wait for those looking for a better deal.
Overall, leaving the European Union on the 31st of October might seem like a prospect more frightening than the dimly lit Jack-O-Lanterns lining the streets at the time of departure, and there will surely be some reactionary instability in the economy, but the property market ultimately seems to want to persevere. Projects looking into a future post-Brexit have anticipated higher rental yields and capital growth on properties, and with the continual surge of interest from overseas investors, it might be an investment worth considering.
