New research by Carter Jonas has warned that a vote for Britain to leave the European Union – commonly known as a Brexit – would pose a serious threat to property investment in the UK.
Findings from the Carter Jonas poll reveal that nearly two-thirds (65%) of property experts believe that a Brexit would have a major impact on investment in UK property.
“Whilst the EU referendum campaign is still in its early stages, the majority of the property industry are concerned that a Brexit would make the UK less attractive for investment,” Darren Yates, head of research at Carter Jonas, commented.
“There is a distinct uneasiness about leaving the European Union. Only around a fifth of those polled – 22% - believe that a Brexit would have no effect on investment, while just 13% think that it would have a positive impact.”
A potential Brexit isn’t the only significant challenge facing the UK property market over the next two years, the poll also showed. Worries about the housing shortage, increasing construction costs and the prospect of higher interest rates were also mentioned, while planning reforms and the skills shortage in the property industry were other major concerns.
“Regardless of the ‘in or out’ debate, people in the property industry want certainty. As we saw before the referendum on Scottish independence, many occupiers and investors delayed their decision-making,” David Aspland, Carter Jonas’ Head of Commercial in the northern region, said. “We expect a similar ‘wait-and-see’ approach as the EU referendum draws near, which could impact on sentiment and activity.”
He added: “While UK plc will survive whatever the outcome, a Brexit would lead to more uncertainty while the new arrangements were negotiated.”