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Investors Love Brum Resi, Despite Brexit

Birmingham's Timber Yard development

Urban Exposure has taken its exposure to the Birmingham city living scene to more than £110M with the completion of a £67M loan to Galliard to back the 379-unit Timber Yard development in Birmingham Southside.

The loan was signed in Q4 2018 and formed part of the £522M of new loans Urban Exposure completed between its initial public offering on 9 May and the year end 2018.

Last year Urban Exposure provided a £40M senior development facility to SevenCapital for a 228-unit residential scheme at St Martin’s Place in Birmingham, meaning Urban Exposure has provided a combined total of £110M in financing to property developers in the city since its IPO.

According to research carried out for SevenCapital, Brexit is having no serious adverse impact on the local property investment market.

A global survey of high net worth individuals earning more than £100K a year,  conducted by Censuswide on behalf of SevenCapital, found that more than four in five (85%) of those who are currently investing in property are investing in the UK’s property market, regardless of Brexit.

Of all respondents from the UK (investors and non-investors) more than 30% identified as currently investing in property with all of those confirming they invest in UK property. Interestingly, nearly one in four (23%) cited Brexit as the catalyst for them to invest.

Asked how strong they believe the UK’s property market will be in the next 18 months, more than half (55%) believe the market will be good to very strong, with that figure rising to around two in three (64%) when asked about the picture in three to five years’ time.

“Realistically, it’s the fear and the perception of Brexit that will have any effect, rather than the physical act of leaving the EU," SevenCapital Director Andy Foote said.

“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."