EU Referendum: Property

With only 4 weeks until the UK decides to remain or leave the EU, we will be scanning the media for updates on the EU referendum observing several key media outlets, influencers and political members, with particular market sectors in mind. The 3 main sectors we will be studying the opinions of consist of: property, manufacturing and construction, insurance and job markets.

We will look into the views of national papers and media influencers such as:

  • The Independent,
  • Financial Times,
  • The Guardian,
  • The Observer,
  • The Daily Mail,
  • The Evening Standard,
  • The Sun,
  • The BBC,
  • Sky and
  • Channel 4.

To have a thorough understanding of the campaigns, we will also be highlighting key features from both sides of the political campaign: Remain and Stay.

This week we will be viewing the EU referendum’s opinions, facts and updates on the Property sector.

*Please note: the opinions and facts are owned by Adler Insurance Brokers. We have linked all of the information to the correct source for further reading and understanding of the matter.*

Remain in the EU Updates

‘This week, a poll by the Telegraph suggested that the tactics (scaremongering) that have been used to promote the remain campaign were paying off, showing for the first time a lead for staying in the EU among older, male conservative voters.’

‘Momentum, the grassroots group of Jeremy Corbyn, has decided to support the remain campaign. They had stayed neutral up until the 24th May. The supportive direction was decided after a poll taken on Saturday (21st) showed two-thirds of their members backed the UK staying in the EU.’

‘George Osbourne warned last week that the UK property market would decrease by 10-18% if the UK votes to leave by mid-2018.’

‘Gordon Brown, former Prime Minister, has been urging mothers to remain in the UK for the sake of their children’s future, in the respect of their potential job prospects.’

Leave the EU and Business as Usual

‘Private tenants could potentially see a decrease in the amount of rent they pay if the UK decides to leave the UK.’

‘Investors view the EU Referendum as an opportunity to capitalise, due to the uncertainty of the UK property market,particularly non-domestic investors.

However, we would like to point out, regardless of the increased concerns surrounding the UK, ‘Great Portland Street’ (London property developer) are preparing to start two West End schemes within the next 18 months.’

Property market trends

‘Although uncertainty of residency on the leave campaign, ‘Brexit Clauses’ have been introduced for commercial property investors. This will allow investors to pull out of any deals made if the UK votes to leave the EU on the 23rd June.’

‘This means that buyers and investors will not find themselves tied into contracts until after the vote. These clauses have been set aside for the introduction of South East London’s luxury flat development project.’

‘Following on from ‘Brexit Clauses’, the property market has seen a varied response to the upcoming referendum. Those wishing to buy properties are holding off their purchases as they could find a lower price stamp. Whereas sellers do not feel inclined to settle for less for their homes in comparison to the value their neighbours achieved 6 months prior.’

‘Landlords experience could differ slightly to their tenants. With decreased rent prices, as the demand lessens, the market could find a mass exit of Landlords as the ROI could not be as lucrative.’

We would like to state, our views on the EU referendum are neutral. The opinions and facts are solely based on the sources stated above, assessed with an open and fair approach to sharing information on the changes the UK market could potentially witness in the coming weeks.

Like many others, we cannot be certain on the effects remaining or leaving the EU will have on the UK. All we can do is research both sides of the argument and make an informed decision on the 23rd of June, on the true opinions remaining or leaving the EU would have on you and your business directly, indirectly and as a nation. Ensuring a contingency plan is in place, regardless of the outcome, enables businesses to continue operating with as little exposure to risk as possible.

Many insurers and brokers are uncertain of the impact Brexit would have on the market.  Re-evaluating and examining your insurance needs whilst considering the direct impact of the UK’s relationship with the EU will ensure you are prepared for the outcome of the EU referendum.

Next week we will be discussing the pros and cons of Brexit within the construction industry. If you would like to speak with one of our advisors on the changes and impacts of the EU referendum on your business, feel free to contact us.

Adler Insurance

Content creator for the Adler Insurance Group.