Real Estate Investor Magazine South Africa March/April 2019 | Page 60

BREXIT
Brexit not a major concern
for investors - Censuswide
85%
of property investors globally are currently
investing in the UK market despite Brexit
concerns
Around 58% of investing high net worth individuals
(HNWIs) in South Africa currently invest in property
Of these, 82% are currently investing in UK property
despite Brexit
Seven in 10 cite Brexit as the catalyst for them to invest in
UK property
Brexit will undoubtedly be one of the most debated topics
to go down in UK history, however, new research has revealed
that when it comes to property investment, it isn’t investors’
biggest concern as the headlines would suggest.
 A global survey of HNWIs (defined as earning more than
£100,000 p/a) conducted by Censuswide on behalf of leading
UK property developer SevenCapital, has found that 85% of
those who invest in property are currently investing in the
UK›s property market, regardless of Brexit.
Of those surveyed in South Africa, property is the most
popular investment product with 58% of those who identified
as investors currently choosing property. Of these, a staggering
82% stated they are currently investing in UK property,
regardless of the prospect of Brexit.
Interestingly, 72% cited Brexit as the catalyst for them to
invest, with ‘capital growth’, ‘affordability’ and ‘stable market’
all appearing as the common key factors when considering UK
property for all those surveyed.
Understanding the mid- to long-term view, when asked
how strong they believe the UK’s property market will be in
the next 18 months, four in five (80%) believe the market will
be ‘good’ to ‘very strong’, with a similar figure (72%) for the
UK’s market strength in three to five years’ time.
These are encouraging statistics for the UK property
market, during a period of uncertainty and generally negative
speculation over what Brexit will bring. 
Wayne Morris, National Business Development at
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MARCH/APRIL 2019 SA Real Estate Investor Magazine
SevenCapital South Africa, said: ‘These figures demonstrate
that people generally recognise that there are bigger factors to
consider over Brexit than when it comes to which way the UK
property market is going to swing. Realistically, it’s the fear
and the perception of Brexit that will have any effect, rather
than the physical act of leaving the EU.’
‘Ultimately, if the market were to take a dip after Brexit,
seasoned investors will know that this would more likely be
a catalyst for the inevitable swing back. The property market
is a prime example of well-known cyclical patterns, growing
through recovery and emerging stronger than previous peaks.
In other words, if it takes a dip, as it did 10 years ago, it will
recover and come back stronger.’

‘It’s also important to understand two other key factors.
Firstly, the chronic undersupply means there is an ever-
growing demand for homes in the UK – whether rented or
owned – and that is not something that is going to change
with Brexit.’
‘Secondly, property isn’t a quick purchase or investment,
unless you are a ‘flipper’. If you’re looking to buy a home, the
chances are you’re not going to be thinking about selling up
again in less than five to 10 years’ time, and if you’re a property
investor, you’re likely to be looking for long-term gains from
it. Either way and dip or no dip, the price of your property,
providing you did your research properly before buying, is
likely to appreciate in the long run,’ he said.
The survey was conducted amongst individuals earning
more than £100,000 per year and who live in the UK (55%),
Hong Kong (17%), Dubai (17%) and South Africa (11%) – all
regions known for their interest in the UK property market.
For information on SevenCapital visit  www.sevencapital.
com.

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