Previous research shows that despite Brexit, the UK’s housing market remained strong in June 2016. A new study from CBRE, a leading commercial property adviser, indicates that sturdy economic fundamentals will support British house price growth throughout 2016.
Encouraging price growth
Property Wire writes that CBRE sees current British house value growth of 5.1% as encouraging. The commercial property adviser added that UK residential property prices should expand by an average of 3% in 2016. In the second quarter of 2016, house price growth was strongest in the Outer Metropolitan area (12.4%) and London (9.9%), but weakest in the North (1%), year-on-year.
Despite the many warnings and concerns that were raised ahead of the UK’s referendum in June about a possible collapse of the housing market, the industry has remained strong according to the latest analysis.
It had been speculated that EU directives and European-derived regulations would no longer exist in the UK following the country’s decisions to leave the European Union, however lawyers and ecologists have suggested that they are likely to remain.
Brexit doesn’t mean an end to EU regulations
Currently, developers and planners have to take into account wildlife protection and air quality limits during planning applications, however many of those regulations were introduced by the EU.
Despite this, lawyers have insisted that developers would still have to comply with European-derived regulations which augment the planning system like environmental impact assessment (EIA), air quality limits and habitats protection.
“Many of these will be extremely difficult to unpick, and some reflect international treaty obligations, so are likely to remain, even when the UK finally leaves” said Angus Walker, a senior partner at law firm BDB.
Fears that the uncertainty created by EU referendum could negatively affect markets in the UK was dispelled by the construction industry which was an almost 8% rise in contracts during May, writes Property Developer Richard Carr.
Construction industry maintains strengh
According to Barbour ABI, £6.1bn worth of new contracts were awarded during May, which is 8% higher than the same month last year. The number of construction projects agreed in the UK was also over 10% higher than the same time 12 months ago.
Scotland led the way in terms of contracts awarded, with its Beatrice offshore wind farm project in the Moray Firth valued at £1.3bn.
London followed closely behind with its largest project being the £325.8m project with the Canary Wharf Group to build new office building Ten Bank Street.
Poole-based businessman and property developer Richard Carr believes the United Kingdom will become a richer nation if it leaves the European Union on the 23rd June.
Richard Carr has been in business for three decades, during which he built a public limited company and enjoyed success in the nightlife and property development industries.
He believes the UK will be a stronger nation if the country decides to leave the European Union later this month.
“Once the shock of leaving the EU is digested it’s highly likely that the pound will rally,” he said. “As an isolated nation we won’t be affected by the redistribution of wealth that is likely to happen in the European Union.
PM David Cameron has warned that leaving the European Union will put billions of pounds of UK infrastructure investment at risk, writes property developer Richard Carr.
According to the PM, leaving the EU would result in Britain terminating its membership with the European Investment Bank therefore “putting the brakes” on crucial UK infrastructure projects.
Over the past three years the bank has invested over £16bn in UK projects.
Cameron said: “Vital projects across every region of the UK have been financed by the EIB.
“Not only would leaving the EU see us wave goodbye to this crucial funding – but, with a smaller economy hit by new trading barriers and job losses, it’s unlikely we’d be able to find that money from alternative sources.
Speaking on ITV’s Peston on Sunday Politics he revealed that the Treasury is set to release an important piece of research into how Brexit would affect the UK economy and specifically the real estate market.
Although there has been plenty of positives coming out of the industry over the past months in relation to increase planning applications and new funds to help social housing, the country’s housing shortage remains one of its major problems.
As a result of the increasing uncertainty around the decision that will be made following the referendum, residential investment transactions in the residential sector have slowed and limited house buying transactions across the house price spectrum.
However, there’s no need to panic, yet.
“This is not unexpected as there’s usually a slowing of residential transactions before any national poll. After an election vote we typically see the residential sector recover and bounce back as stability and confidence returns,” the report says.
“Should the UK opt for a Brexit, we could assume that uncertainty could linger while the UK Government negotiates new trade deals and relationships with the EU and third countries,” it adds.
With the EU referendum taking headlines on a daily basis, property developer Richard Carr examines how leaving the EU would affect the UK’s property market.
What will happen to the UK property market if Britain leaves the EU?
The problem with referendum’s like leaving the EU and events such as the general election, they create an element of uncertainty which generally has a negative effect upon the housing market. As was seen in the run-up to this year’s general election, with buyers and investors unsure on which policies would be introduced the market stalled somewhat until clarity was achieved.
Richard Carr expects a similar situation as the referendum draws closer, buyers and sellers will want to play safe until an outcome is reached.
Analysists are only able to forecast and predict what impact leaving the EU will have upon the property industry and a lot of it will come down to how the economy is impacted generally. However, a survey conducted by KPMG found that 66% of real estate experts felt that leaving the EU would have a negative impact on inbound cross-border investment.