Brexit – impact on the property market
Property lawyer, Russell Burnett, looks at the implications of Brexit on market conditions and inward investment on the property market.
The implications of Brexit are greater concerns than pure legal ones.
There are aspects of law which are particularly relevant to property investors by virtue of the UK’s membership of the EU, including planning requirements (such as environmental impact assessments) and directives relating to improving energy efficiency.
At present, Britain is Europe’s preferred choice for property investment. Will it continue to be?
There is confusion as to the potential effects of a Brexit on property.
- change the fundamental basis on which investors can access (and exit) the UK property market?
- affect London’s status as a financial capital as companies review their position?
- cause global businesses to consider reducing their UK operations?
- result in occupier nervousness, with a resulting reduction in take-up?
- Impact on cost (and therefore viability) of construction projects as proposed changes to freedom of movement are felt;
- affect the ease of movement of goods and services across Europe?
Property law has remained largely a national concern and therefore unaffected by EU membership. However EU regulation including the free movement of workers and the environmental law requirements are relevant to the property market.
The performance of the UK economy, and any changes in perception about Britain’s importance in the world, are likely to be more significant in this context than any purely legal changes.
Although every business is different, most people we talk to are holding fast – and not making any quick decisions.
We are talking with our business clients about likely scenarios for the future so they can make considered judgments on the facts not journalistic speculation. We will be working closely with them as the plans for the UK exit from the EU start to roll out
Whatever your view as to the outcome of the referendum any period of change does present opportunities for future success for businesses and individuals as a result.
This article just provides an overview of the law in this area. You should talk to our Property team for a complete understanding of how it may affect your particular circumstances.
Call Russell now on 01423 851 104 or email to arrange a call with the Property law experts at LCF Law today.