Why Gulf investors may be attracted by the UK’s post-Brexit property market

Why Gulf investors may be attracted by the UK’s post-Brexit property market

The post-Brexit UK property market offers strong long-term profit potential for international buyers, according to experts.

Britain's freshly-minted EU deal and the rollout of the Covid-19 vaccine in the first half of 2021 will boost the country's post-pandemic economic recovery, leading to house price growth of eight percent on average by 2023, said UK-headquartered property consultants Hamptons International.

However, there will be short-term flat growth in 2021 as the economic consequences of a coronavirus-induced recession pull the housing market from its long-term growth trajectory, according to Aneisha Beveridge, head of research at Hamptons International.

"Following the end of the stamp duty holiday in April we expect the housing market to weaken, particularly as unemployment is expected to peak around this time too.  But an economic recovery in H2 2021 will support the housing market, and we expect house prices to stabilise towards the end of the year,“ Beveridge told Arabian Business.

"International buyers purchasing a property in the UK will face an additional two percent stamp duty surcharge from April and so we expect to see a rise in the share of homes bought by foreign based buyers in Q1 2020,“ she said.

London will underperform the average UK growth rate, with prices forecast to