The prime minister’s pledge to withdraw the UK from the single market has been cautiously welcomed by leading business figures and should go down well with ‘opportunistic’ property investors, according to a senior financial trader.
In a much-anticipated speech outlining the government’s plans for a so-called ‘hard Brexit’, Theresa May this week promised a clean break from Europe, saying her 12-point EU divorce plans “cannot mean membership of the single market”.
Agate Freimane, senior investment director at BrickVest, the online property investment platform, said: “Theresa May's announcement on the UK potentially leaving the single market will be well received by opportunistic investors in the UK and European real estate market and it will undoubtedly trigger more buying and lending opportunities.”
Through its online property investment platform, Freimane reports that BrickVest is seeing strong demand for UK property, especially in the form of “debt like investment opportunities” which offer “good risk adjusted returns in a volatile market environment”.
She added: “Within real estate, we are likely to see the highest level of volatility from the office sector. Many of the international firms currently headquartered in the UK may put on hold any decisions over their long term office space requirements.
“If the UK no longer gives these firms access to the European market, they may need to spread their staff across multiple locations to more efficiently access both the UK and the European market.”
Russell Midgley, director of Aspen Woolf, which provides wealth building opportunities for investors of all levels through property, is also among those who believe this week’s speech by the British prime minster will start a renewed feeling of confidence in the UK market.
He commented: “The speech helped to ease fears in the near-term over a ‘hard’ and more disruptive Brexit adjustment. We expect the market to react positively to her speech in general and would expect a boost in international confidence.
“During prime minister May’s speech, we immediately saw the pound strengthen and believe this is an encouraging indication for the property market. We’ll likely start to see more international activity as confidence continues to increase.”