Number Of Properties Listed for Sale Decline

The Knight Frank report on UK property states, "Despite a decrease in exercise and uncertainty in markets, buyers are investing in houses, though the preference for any option is price sensitive."

Overall the traditional activities are muted, while the average number of applicants registering on the website of Knight Frank increased and is at the highest level in the last five years. In addition, the average viewing of the property has subsequently increased to the highest since 2014.

The data of Rightmove show the stock level is low, while the demand for property continues to build, and political clarity will create more demands in the future. 

The number of properties listed on the websites in 2019 in England and Wales fell 18 per cent compared to the same period in 2018. The newly listed property fell 30 per cent since 2016 before the referendum, providing a greater opportunity for the sellers who can trade at competitive prices in the current high-demand situation.

Overseas Investment Grow

The world's largest real estate firm CBRE agreed to buy London-listed Telford Homes for £267m to access the growing market for build-to-rent projects in the UK.

The firm said the country is in the early phase of shift where institutional investors will own the rental housing markets, just like the US markets that grew in the last two decades. 

The firm is confident about long-term prospects even amid the risk posed by the macroeconomic environment and weak political factors. 

The UK housing markets faced stagnation last year. Yet, the investors assume the housing sector can provide a platform for it to enter and capture the area dominated by amateur landlords as it plans to develop a large-scale, multifamily asset class, like Germany and the US. 

The New York-listed property group claims it entered a deal to buy Telford for 350p per share. In general, there has been a drop in foreign-owned property in the UK due to the new tax laws.

Before April 2019, the foreign companies were not liable to pay corporation tax which attracted overseas firms to invest in certain commercial real estate projects. However, from 6 April 2019, non-residents are liable to pay Capital gains taxes on sales.

It is accepted that the business sectors have not been broadly influenced by Brexit vulnerability, and even amid economic turmoil and global economic slowdown, the values are gaining (2% since 2016). Only the high-priced property (over £2m) was lower by 5%.

Overseas investment continues to grow in the region, and more than 50% of the investment in Ireland's Commercial property sector originated from outside – as per the Central Bank report.
A financial stability note by the bank found that investment funds held the largest share of €18 billion in Irish commercial real estate at the end of 2018.

Offshore investment is growing in many prominent locations like Birmingham, where in May 2019, 1102 properties were owned by offshore companies, while the number was at 1099 in January 2018.

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