Brexit

How does the upcoming referendum effect the property market? Firstly let’s focus on the construction industry, a large percentage of construction workers are immigrants and with the construction industry already finding it difficult to find skilled workers and immigration restrictions are going to increase construction prices due to the supply. This will increase property prices by both making property more expensive to build and therefore will need higher prices when being sold and also by reducing construction due to the inflated cost and therefore decreasing supply. 

Another area which is predicted to be effected by Britain exiting the EU is the interest rates. It is expected that interest rates will stay low if Britain decided to leave the EU, for the short term at least. Areas in London such as Canary Wharf will probably notice a drop in uptake as they are heavily occupied by banking and with a change in the investment banking market, it is said there will be less movement.

Eugene O’Sullivan a chartered surveyor at Morgan Pryce says, “With Brexit on the horizon and the uncertainty it caused, the development market is coming to a bit of a stand still. It will be interesting to see the long term effects of the referendum.” 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.