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5 Property
Investment Trends
to Watch in 2020
 5 Property Investment Trends to Watch in 2020
5 Property
Investment Trends
to Watch in 2020
As the year draws to an end, investors’
attention naturally turns to the coming
12 months. Following a period of
prolonged deadlock in Westminster,
resulting in little progress in both Brexit
negotiations and domestic affairs, there
is a palpable sense that 2020 will bring
with it a myriad of new developments.
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But what changes can we expect
Boris Johnson now leads a Conservative
government that has a Commons
majority of 80. On 12 December the
party recorded its biggest election win in the property investment space
for 30 years – it places Johnson and his
cabinet in a strong position to not only
push their Brexit deal through parliament
next year?
but to also implement broader reforms
that could affect property buyers and From Brexit and stamp duty to new-build construction and alternative real estate assets,
investors. Experience Invest has highlighted five of the most prominent and important trends for
property investors to watch in 2020.
 5 Property Investment Trends to Watch in 2020
1
Brexit resolution
and upturn in
activity
January
At a glance, the UK will start 2020 in a
manner not too dissimilar to the one it
started 2019; namely, question marks
remain regarding Brexit – how, when and
if it will happen.
The original Brexit deadline of 29 March
2019 was moved to 12 April and then to
31 October before being shift backwards
a fourth time to the current deadline of
31 January 2020. It has been a continuous
backfired (it resulted in her party losing
seats), the recent vote saw Johnson
and the Conservatives’ strengthen
their hand considerably, giving them an
overwhelming majority in the House of
Commons.
As such, Johnson is now seemingly in a
position to deliver on his promise to “get
Brexit done”. This, in turn, could trigger
a hive of activity across the UK property
market.
Indeed, in Q3 2019 Experience Invest
surveyed more than 1,000 UK property
investors. We found that just over half
(51%) of the respondents were confident
source of uncertainty and frustration for
consumers, business and investors alike
throughout the past year.
51% 55%
of respondents
However, the New Year promises to
bring a resolution to the 42-month believe there will be
Brexit saga. And that is because Prime
Minister Boris Johnson succeeded an increase in listings
where his predecessor Theresa May
failed in 2017. While May’s decision to and sales once Brexit
call a General Election two years ago
is complete.
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there will be an increase in listings and
sales on the property market once Brexit
is complete. The majority (55%) also said
they have paused on their investment
plans over the course of 2019 as they
await the outcome of Brexit.
Brexit now looks set to go ahead on
31 January 2020. With this will come
greater clarity and certainty over how
investment markets will perform and
what state the UK economy will be in
– one would expect this to provide the
foundations for greater activity in the
property investment space over the next
12 months.
of respondents
have paused their
investment plans
as they await the
outcome of Brexit.
 5 Property Investment Trends to Watch in 2020 experienceinvest.com 7

2
Spring
Budget and
potential tax
reforms
Brexit may have formed the core of Boris major fiscal announcement will be made
Johnson’s election campaign, but as we before 21 March 2020.
pass the 31 January deadline it is likely
that domestic affairs will once again take For property investors, perhaps the most
centre stage. important would be changes to stamp
duty. The Conservative Party has already
On the campaign trail, Johnson promised consulted on the idea of a stamp duty would implement a 3% surcharge for Nevertheless, the next Budget in late
that his party would deliver a new Budget surcharge of 1% for non-UK residents overseas buyers. February or early March will almost
within 100 days of the election result. If buying UK property – in November the certainly contain some significant
true, this means the Government’s next party hardened its position, stating it The move aims to ensure more homes policy announcements and tax reforms.
are available to buy for UK residents. Public investment into new-builds and
But it should not be seen as death knell wider infrastructure – both digital and
for foreign property investors; far from physical – is also likely, which will have a
it. The stamp duty rates in the UK will bearing on current and future property
still remain extremely competitive, and investments.
far lower than many global hotspots
As the first Budget of a new five- when it comes to international real We will gain a clearer idea on potential
estate investment, including Hong Kong, areas for change in the opening
year parliament, and after the 2019 Singapore, Berlin and Sydney. weeks of the new parliament, which
Autumn Budget was scrapped due commenced with the Queen’s Speech on
Furthermore, the steady weakening in 19 December. Ultimately, though, the
to the calling of the election, many the value of the pound over the past Budget is going to be a key date that
experts are predicting notable policy three years has also meant that UK property investors will need to add to
property represents greater value for their diaries.
announcements to come out of overseas buyers – this is a trend that is
unlikely to be reversed in 2020 alone.
Chancellor Sajid Javid’s red briefcase.
 5 Property Investment Trends to Watch in 2020
3
Property
price growth,
particularly
outside London
Shifting the focus away from those
two major political events, which will
inevitably have consequences for the
UK property investment sector, there
are more direct trends that must also be
considered. Most notable among them
is the predicted figures for house price
growth.
House prices in the UK have continued
to rise over the past three years,
despite the political and economic
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According to forecasts by the Centre for every 24 hours, with the West Midlands
Economics and Business Research, 2020 leading the way (+£36.58).
could witness a sharp spike in house
prices, which would see the average value This trend looks set to continue in 2020.
of a UK house rise to over £300,000. In fact, regional house price growth
could be spurred on further by the
Other predictions are more conservative, Prime Minister’s promises to reignite
though still positive; a poll of 27 property
market analysts carried out by Reuters
the Northern Powerhouse initiative –
given Johnson’s party enjoyed much
states that UK house prices are predicted success across the North in December’s
to rise by 1.5% next year and 2.3% in
2021.
election, there may be an onus on the
Conservatives to reward the newer
supporters with greater investment into
Importantly, though, the Reuters poll the region.
also suggests that prices in London will
fall by 1.5% in 2020, which is lowering the All this suggests that regional cities like
overall total. In fact, this is a trend that Liverpool, Manchester, Newcastle, Cardiff
has been prevalent over recent years, and Birmingham could attract significant
with prices in the capital stagnating or attention from property buyers in 2020.
sliding while other regions grow at pace. Monitoring price growth in regional
hotspots like these is, therefore, going to
Analysis of 2019’s data by Zoopla shines be important for investors next year.
a light on this trend. It found that on
average a property in London fell in
value by £71.23 each day in H1 2019 – by
comparison, real estate in the North East
(+£6.97), Wales (+£18.03) and the North
West (+£20.39) all increased in value
uncertainty emanating from Brexit. In
early December, Halifax released its
latest House Price Index, showing that
UK house prices were 2.1% higher in
November 2019 than they were a year
before – the average price now stands at
£234,625.
£300,000 1.5%
2.1%
The aforementioned upturn in activity avg. UK house price
within the UK property market post- could be reached
year to September
Brexit could catalyse further price growth in 2020
2019
in the early stages of 2020.
 5 Property Investment Trends to Watch in 2020 experienceinvest.com 11

4
Interest in
alternative
property
assets
Investors would be wise to not only consider different It is unsurprising, therefore, that a student housing investment transactions
regions across the UK when seeking bricks and mortar significant number of property investors in the UK is estimated to have reached
investment opportunities in 2020; they should also both domestically and internationally £4.5 billion in 2018, marking an increase
think about the different types of property assets are being attracted to student of more than 10% from the previous 12
that are available. accommodation in the UK for their next months.
investment. This is a trend likely to
Off-plan property investment is one such example, continue in 2020. With huge demand for PBSA among the
which shall be explored in greater depth when UK’s student population, this is becoming
we come to the fifth and final trend According to Knight Frank, 29,000 new an increasingly common part of property
(below). But so too is purpose- purpose-built student bedrooms were investors’ portfolios. For those seeking
built student accommodation built across the UK in 2018/19; a 25% revenue-generating assets in 2020, it is
(PBSA). increase on the previous year’s figures. certainly worth considering.
More generally, the cumulative value of
There are more than 2.3
million people studying
at UK universities
in some capacity at
present. And of course,

2.3 25% £4.5

the vast majority of
these students require
places to live, with
PBSA a particularly
popular choice for million increase billion
international students, people studying at in PBSA construction invested in
who continue to flock UK universities in 2018/2019 2018
to the UK’s world-
renowned educational
institutions.
 5 Property Investment Trends to Watch in 2020 experienceinvest.com 13

5
All eyes on
One of the major property trends of 2020 not suitably supported by investment
will be the ability of the government into the infrastructure of the local area.
to achieve its new-build targets. For

construction
property investors, this opens up a range At the Conservative Party Conference
of new opportunities – from blocks in late September and early October,
of flats through to new-build housing the Housing Secretary Robert Jenrick

output and complexes, there is a chance to purchase

new developments off-plan, which
spoke about how he was going to build
beautiful new homes, while Sajid Javid
not only typically come at discounted insisted better infrastructure would be

new-build prices (based on the market value of

the completed asset) but can provide
built around them.

statistics
returns in the short-term as a benefit of
supplying vital capital to the developers.
Importantly, when it comes to the
construction of new homes, developers
must ensure the properties are desirable.
There has been criticism throughout 2019
that too few new-builds were erected,
but also that they were unattractive and
“We can do more – a lot more,” Javid
stated. “This government is going to build
Britain’s future.” Moreover, according
to new guidelines unveiled by Housing
Secretary Robert Jenrick, ugly homes
have no place in this future.

The Housing Crisis has been one of the

most-talked-about domestic issues of
the past two decades. Simply put, there
is a severe shortage in housing available
across the UK.
As a result, subsequent governments
in the 21st Century have made bold
statements and set bolder targets for
increasing the country’s housing stock.
Over recent years, the regularly-touted
objective is to add at least 300,000 new
homes to the market every year – a goal
the Conservative government has said it
will aim to reach by the mid-2020s.
As outlined earlier, the upcoming Budget
is almost certain to reference this new-
build target. And with this ought to come
a renewed focus on increasing public
sector investment into the construction
industry.
Can the public and private sector
come together to build more
new homes?
And can they make sure these new homes
are attractive to potential buyers or renters?
Those are two important questions for
2020, and property investors will need
to watch this space with interest as it is
certainly going to be an area filled with
potential opportunities next year.
5 Property
Tackling theInvestment
Housing Crisis:
Trends UKto
Perceptions
Watch in 2020
on a Pressing Problem experienceinvest.com 15

Some thoughts from

Experience Invest

“Looking to the year ahead, there are many reasons for optimism. The result of the
General Election handed the Conservative Party the sizeable majority they wanted,
which ought to mean Brexit materialises in the New Year and we as a country can
move on to address domestic issues and bolster the UK economy.

“As we have outlined in this guide, there are numerous trends that property investors
ought to watch out for in 2020. These can most easily be broken into two categories
– political trends and market trends. Though indelibly linked, investors must consider
both the actions and reforms that will be introduced by Johnson et al, while also
remaining abreast of changes in the world of bricks and mortar.

“I believe there will be a hive of activity in the UK real estate sector next year,
including a greater volume of new-builds being constructed and more people looking
to buy or sell property after Brexit uncertainty passes. As ever, though, property
investors must do thorough research of industry trends as the year unfolds to ensure
they are identifying and acting on the right opportunities.

“At Experience Invest, we enter 2020 full of confidence. And we look forward to
working closely with both UK and international property investors to help them not
only understand the trends highlighted in this guide but also to enable them to find
the right investment for their individual circumstances.”

Jerald Solis,
Director, Experience Invest.
5 Property Investment Trends to Watch in 2020

5 Property
Investment Trends
to Watch in 2020

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