Tag Archives: Brexit



July 15 / Marketing, Property

State of Real Estate Market: July 2016

Each month we report on the current state of real estate, but this month has been dominated by one single topic: Brexit.

Yes, on June 24th we discovered that the UK will be saying ta’ra to the EU, leaving the world in a state of shock. And you can be damned sure that this has affected the state of real estate in July.

Property trusts suffer hard

There is often no better long-term investment plan than a property trust. But by their very nature, they will collapse in the event of mass-withdrawals. Post-Brexit, too many people have been trying to withdraw cash from these trusts, resulting in suspended accounts until the properties can be sold.

Commercial property is boosted

It’s not all doom and gloom, and a real boost to the commercial property market was delivered when the developers of the Cheesegrater in London (aka Leadenhall Building) announced that the building had been filled. With rent in the building reaching up to £100 per square metre, this is a real post-Brexit blues boost that the property sector has been needing.

Investment opportunities are rife

A US private equity firm this month announced it will be investing £1 billion in UK property, following the cut prices available, both to residential and commercials real estate. The opportunity for buyers is clear, and great deals are available among the uncertainty. We all know property bounces back, so now is the time to buy.

So there you have it. July 2016 was the month that Brexit dominated the property market. Let’s hope next month gives us respite and something else to talk about. But remember, now is the time to buy!

 

July 13 / Marketing, Property

Property in the UK after Brexit

52% of those reading this article will be thoroughly chuffed to see that the UK is moving away from the EU. 48% of you might be a little less chirpy.

Either way, PM Theresa May has said ‘Brexit means Brexit’ so it looks like we’ll have to deal with it and move forward.

So, we ask how this is affecting the property market in the UK, in the immediate aftermath of the unexpected result.

Firstly, what’s happening now? A lot, is the simple answer. For one, it turns out that some purchasers had ‘Brexit-clauses’ written into their contracts, that have allowed them to walk away from deals when the result went the way it did.

This, combined with smaller interest in property currently, has meant zero growth in the London property market, and a standstill during the Brexit period.

It has been widely reported that property trusts aren’t doing all too well either, since attempts to withdraw cash means property must be put up for sale. This takes time, and so some trusts have had to suspend withdrawals, due to too high demand.

But it isn’t all doom and gloom. For Britons looking to buy, now is the time! With prices not increasing, and less demand overall, a good deal on a property can be brokered.

So if you were a Remainer but were also in the market for a new home, look on the bright side and grab a bargain!

Brexit Property Fears
April 21 / Property

Brexit: What impact is the EU Referendum having on the Property Market?

There is an EU referendum on the way. Not breaking news in itself, we are all well aware of the vote. But, with the results very much an unknown, the uncertainty is affecting the property market.

It has been common knowledge that the current uncharted waters are causing recruiters to be nervous. The number of short-term contract team members has increased and at the same time, full-time employment growth is slowing. With so much to play for, companies are erring on the side of caution.

The same is true of the property market right now. Big decisions, whether or not to purchase land, to start work on plans, the next big marketing push etc. have been delayed until after June 23rd. Even after that date, if the vote swings for Britain to leave the EU, many more discussions will need to take place and investments could be pushed back even further.

The macroeconomic environment could be on the verge or a large change, so most property developers are sitting back and waiting for the date to pass to stay on the safe side.

David Sleath, CEO of Segro recently said:

There is a dramatic slowdown in the investment space because people who have got [property] to sell are sitting on their hands.” Source.

EU Referendum

Property is not only a place to live and work but a key investment asset too. On the run up to the referendum, shares in property investment businesses and commercial property companies have been falling. This is again, due in part to the uncertainty, especially where overseas funding is involved. These are nervous time for all investors.

However, Brexit is not the only reason. The UK residential property price boom looks to be over; there are changes to Stamp Duty and the whole global economy is slowing. These factors combined with the EU vote has created a perfect property storm consisting of risk gambles and the jitters.

Thankfully, with a bit of look, the fears could only be around for the short-term. From large property projects to first-time house buyers, there is an air of nervousness. But once the referendum has passed, things are expected to return to normal.

The imbalance between demand and supply shall continue, with house prices, for example, set to rise by 25% over the next 5 years and half of existing UK housebuilders “not worried” about the potential impact of an EU exit. So, roll on June 23rd!

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