The referendum vote for the UK to leave the European Union gives rise to numerous questions, not least the access to the European single market by the UK and the control of immigration in the future. For many, the freedom of movement of labour goes hand in hand with the freedom of trading goods and services throughout the European Union. However, it remains to be seen what form of relationship can be made with our European allies in the future but the uncertainties concerning this situation have already had an unsettling effect on the UK property market, both for commercial premises and also residential accommodation.
Some Property Funds have found they have had an excessive cash call on their funds and so have suspended further property trading for the time being . Furthermore, some companies are withholding further investment in commercial premises in the UK until the situation has become clearer and in some instances may divert some real estate decisions into other countries in mainland Europe. Residentially, the market had slowed down before the referendum and there may well be a price correction now in different market conditions.
On the other side of the coin, Britexit provides an opportunity for the UK to trade more openly in different parts of the world and already some positive reaction in that connection has been received from China and Australia.
The fall in the value of sterling has made imports from the European Union more expensive and our exports more cheaper. Some of the raw materials for the building industry come from mainland Europe has become more expensive as has steel from China. This is making cost analysis more difficult in the short-term and may well mean that some new development schemes are delayed pending more certainty on market conditions .