New survey reveals the real impact if the UK leave the EU

May 20 2016

Darren Best

According to a survey conducted by Broker Cushman & Wakefield Inc, they found that the majority of international property investors have put their purchases of commercial property in the UK on hold, amid fears the market will crash. Commercial property has fallen 28 percent in the first quarter to £10.7 billion and the demand for commercial property will decrease, leaving the UK economy weak and vulnerable if we were to leave the EU. Brexit1 If the UK leave, investors will look to other regions for future purchases, with countries outside of Europe to be crowned the beneficiaries. Nigel Almond, head of capital markets research at Cushman & Wakefield has commented: ‘The UK is a big part of the EU, so there is going to be short-term impact on European markets as well in the event of a Brexit’. Not to mention, he also commented that ‘We are probably going to have a two-year period of negotiation over the terms of a Bexit, so people will want to take stock and consider their approach’. If the UK were to leave, most buyers wouldn’t immediately take their investment elsewhere, rather the survey of landlords based outside the EU, who manage collectively $650 billion of property will negotiate deals. Brexit2

So what will leaving mean to the property market as a whole?

The younger generations of the UK have quickly become accustomed to the idea, they will not be able to afford a home until they are at least 30. However, forecasts have been made in the event of leaving the EU, which states rent bills will drop if we leave. Property for the first time in a long time will be considerably more affordable for first time buyers. The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (Arla) will leave the average house price worth in the UK £2,300 less in 2018 and £7,500 less in London. Brexit3 The fall in property prices was reiterated by Christine Lagarde, the International Monetary Fund (IMF) who warned that quitting the EU would result in ‘sharp falls’. According to the NAEA/Arla report, back in 2013, it was reported that 17% of overseas buyers in London’s central property market were in fact EU nationals. If the UK leave the EU, these nationals will be stripped of an opportunity to invest in a key influential property market in Europe. Tell us your thoughts in the comments below whether or not you agree and which side of the fence you stand? Feature image credit: pisaphotography/Shutterstock

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