What Does Brexit Mean for UK Investment in 2017?

10th January 2017

While the result of the EU referendum back in June last year shocked the nation, the uncertain future for Britain didn’t all spell doom and gloom. In fact, for those looking to invest in UK properties, the future has never looked so bright.

The plummeting value of the pound has had a major impact on the behaviour of holidaymakers, with millions of Brits abandoning plans to holiday abroad due to the rising costs. The effects of Brexit are likely to hit even harder during 2017 too, with studies predicting that the cost of foreign holidays will increase by as much as 20%.

The value of the pound dropped by 10% against the euro since the Brexit result. This means that holidays to popular European countries now cost an average family of four a massive £245 more than they did before the vote result was announced.

Most travel agencies choose to absorb the rising prices of travelling to popular tourist destinations, but with economic uncertainty on the horizon, those extra expenses will likely be passed onto the customer. A report by Travelzoo found that four in five of the UK’s travel companies will be announcing price hikes in 2017.

Travelzoo’s UK Managing Director, Joel Brandon-Bravo says: “The impact of sterling’s fall, in particular, has not really been felt in holiday pricing to date. However, all the signs are pointing in the direction of price hikes for many popular holiday destinations in 2017.

“We expect pricing for next year’s holidays to increase by at least 10%. For almost one-fifth (17%) of those we spoke to, the increase could be as high as 15-20%.”

But what does all this mean for those considering property investments?

Well, those rising prices will result in less and less Brits choosing to travel abroad, meaning that property investing abroad is becoming more and more unsteady. In stark contrast, though, UK property investment is becoming a much safer choice, with millions opting for UK “staycations” instead.

Brits holidaying within the UK, or “staycations” as they are more commonly known, have become more and more common, with the first quarter of 2016 seeing a record-breaking 7.3 million English holidays. This represents a 10% rise from the same period in 2015. This figure is likely to continue to grow throughout 2017. Tourism boards across the country have already been receiving a record high of bookings and enquiries, with staycations to destinations such as Norfolk seeing a whopping 25% increase.

This is set to pump billions back into the British economy and investing in the UK property market is the best way to get yourself a slice of that.

At Dream Lodge, we offer a wide selection of fully equipped and decorated investment properties at eight of the UK’s most popular holiday destinations, including Devon, Berkshire, Cornwall, East Sussex, Essex, Norfolk and Cambridge. Our parks are also open 12 months of the year, meaning you can continuously rent out your lodge for a steady income.

When you choose to buy with us, we make your property investment even easier and reduce the financial risk further. If you add your lodge to our rental pool for a minimum of four years, you’ll receive an 8-12% return on your investment, along with eight weeks of the year for you to enjoy your holiday home for yourself if you wish.

We make everything so simple and straightforward, with luxurious holiday parks that are guaranteed to attract business throughout the year. So if you are thinking about investing in UK property, get in touch today and see how you can make Brexit work for you.