The UK property market will be boosted by global uncertainty in 2017, according to Colliers

Mark Sands
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The UK voted to leave the European Union on 23 June. (Source: Getty)

The UK's property market will be boosted by global uncertainty through 2017, according to forecasts from Colliers International.

With Prime Minister Theresa May set to trigger Article 50 before April, the real estate advisor warned that Brexit fears could affect the UK market.

But it added that investors would see through that uncertainty, with property volumes to recover in 2017 and exceed £50bn.

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What's more, it added that the liquidity and transparency available in the UK will lure in fresh money from institutions investors, while political earthquakes elsewhere, such as the election of Donald Trump could enhance Brtain's reputation as a safe haven.

“The UK remains one of the most transparent and active places to do business, and currency arbitrage by international investors is opening up opportunities for new and greater investment which will no doubt help to drive the UK real estate market in 2017,” said Colliers UK and Ireland chief executive Tony Horrell.

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However, the firm's associate director of research and forecasting Martin Mahmuti, cautioned that when it comes to returns, challenges will likely remain throughout the year.

“Total returns in 2017 will show a very modest recovery over the 2016 collapse, but will struggle to breach two per cent,” Mahmuti said.

“Rental growth for all property will be flat and the minus three per cent negative capital growth trend seen in 2016 will be replicated in 2017.”