Buyers' inquiries and sales agreements have declined over Brexit unpredictability- the RICS latest market surveys indicate. In some regions, both buyers and sellers are waiting for the closing of Brexit. A survey found that 77 per cent of the respondents blamed political uncertainty for the delay and waiting.

London was the most popular city for overseas property buyers last year, but confusion over Brexit hurt buyers and sellers, leading to a pause in the transaction. 

As per Savills report, in January, only two deals were made in the West End, which was the lowest on the monthly record, and there were four transactions in the city worth £111.25 million, which was 75 per cent less month-on-month as compared to 2018 and 80 per cent low from 5 year average of £500 million.

Overseas Investment

The increase in stamp duty hit London properties, but the market's stagnation has not affected the foreign investors. According to leading property investment companies reports - four of five leading property investors from the UK, South Africa, Dubai, and Hong Kong are still buying.

The polls found 450 high-net-worth investors from these countries, constituting 85 per cent of the investors who bought the property in commercial or residential markets. They are still seeking opportunities, mainly during Brexit, as the prices are declining and the exchange rate is favourable.

Rents And Number of Renters Grow

The number of tenants in the country is growing. Around a fifth of the total population lives in rental accommodations with a private landlord, and the rents continue to increase yearly. The latest warning by RICS states it may grow over the next 15 years and climb by 15 per cent due to a shortage of supplies of affordable homes.

The changes during Brexit can increase the tax burden on buy-to-let property homeowners, and the rents may increase. However, the recent reports also find the rents declined in some areas in the last year like Humber and Yorkshire, where the drop was by 3.63 per cent, and in London, the price dropped by £30 a month.

Last year Mark Carney, the governor of BoE, warned of a recession in the market. He predicted that the prices could slide by a third in case of a no-deal Brexit, but the annual figures indicate the prices are competently stable and growing in some regions. Moreover, the increase in investment from overseas indicates people are considering various other factors, not just Brexit. 

Scottish Property Gain During Brexit

In 2018, the Scottish retail, offices, and property markets outperformed the UK markets as per CBRE reports. However, the research found that annual Scottish commercial property returned 5.6 per cent in 2018, slightly low compared to 6 per cent of UK all property.

In Scotland, office and industrial returns increased y-o-y; offices gained 8.2 per cent (5.9 per cent in 2017). Double-digit returns were delivered by the alternatives in Scotland, where the key challenges in the retail sector kept the markets subdued at the year-end. However, the retail sector gained with the sale of Fort Kinnaird Retail Park, located east of Edinburg.

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