When the UK voted to leave the EU on 23rd June 2016 many business and property experts made some pretty bleak predictions about the effect this would have on the commercial property market in the South West and for our local businesses.
Without doubt there was an initial “jolt” in the business world and the fact that the decision came just before the summer when there is usually a lull in activity anyway made it difficult to tell the real effect of Brexit but three months on it doesn't feel as bad as many had feared.
Business as Usual?
The feedback we are getting from our clients is that that they are getting on with "business as usual". Fears of a recession seem to have subsided for now but the biggest issue still seems to be that no-one really knows what Brexit will actually mean when it eventually happens, or indeed when that will be. For example how hard will it be for some of our clients to employ staff from other EU countries and will our clients who sell goods to other EU countries be hit with tariffs? We just don't know.
Property Market
In the meantime the UK is still seen as a safe haven for property investment by many overseas investors and quality commercial property in good locations continues to attract strong demand as there is a general lack of supply. The weaker pound also has helped make the UK more attractive to outside investors.
House builders are still under pressure to find more sites to meet the Government's targets for new homes so landowners with good sites should feel comfortable that they are still in a strong position.
Investments and Portfolios
Finally with interest rates at record lows many feel that now is a good opportunity to invest or expand their portfolios. If you are interested in taking advantage of this or would like further information, please contact me jonathan.bailey@awdrys.co.uk
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| Solicitor, Head of Commercial |
