With the implementation period now over, and Brexit completed, that’s at least most of the questions now answered about what things will look like once we’ve left the European Union.
Whether the overall deal was ultimately of good quality in the long term can be debated at length as the country forges its new relationship with the world and what that means for a number of industries which now are navigating new ways of working.
Whether or not you’re a fan of the EU or leaving it, one benefit we can accept will be of advantage to the UK is the government’s ability to set its own incentives and trade priorities when it comes to investing in the UK and what kind of economy we can expect to be moving forward.
Whilst Europe still represents an attractive investment prospect for those looking for a strong return on their money, the UK will perhaps present something of a unique opportunity, with a government keen to attract money into its new vision for the economy.
With that in mind, we’ll take a look at what we think makes Britain a great place to invest next year more broadly, but also more specifically for property investors.
First and foremost, it’s highly likely that the UK government is going to be offering some kind of tax incentive for both domestic and foreign investors to put their money into Britain. Without European trade as its focal point it’s easy to foresee a policy that attracts more blue chip, future-proof industries to try and escape this reliance.
We’ll likely see a focus on tech, finance and property as the government looks to encourage people that the UK is an investment for the future, and without certain requirements from the EU that may well start with tax breaks.
As the financial hub of the world, it’s highly unlikely that countries across the world such as the US, Hong Kong, China and Japan will cut ties and look to move many of their offices across the channel, in fact the environment is likely to become more friendly for them.
As an example of this, Britain has already struck a trade deal with Japan worth billions, and has rolled over many existing trade deals with other countries such as Canada which will allow things to continue smoothly.
Given those facts, it’s likely that many who already invest here will continue to do so, and those interested may be convinced to take the plunge.
We’ve already seen during 2020 that the government sees the property market as a key plank of its economic policy, going so far as to offer stamp duty relief and other incentives in the midst of an economic crisis, regardless how brief.
That’s unlikely to change, and unlike the majority of contemporaries across Europe and the developed west, Britain’s property market boomed even under the shadow of a global recession.
With the property market performing at its best in decades, with price rises and yield growth, many sat up and took notice, and this is likely to translate further into more foreign and domestic investment.
Further to this, many people took 2020 and the restrictions it included as the nudge they needed to either move or start to look to move. Priorities have shifted massively in a short space of time meaning that demand for UK property is highly unlikely to drop during 2021 with the economy opening back up in the spring.
With the brakes applied to construction, demand has risen even further beyond supply than it had before. This, in turn, should mean rental rises and scarcity driving price rises too.
All in all, whilst things may not always be plain sailing for the UK this year, it’s going to be an extremely exciting place to invest and especially in UK property.