How Brexit will affect the real estate & construction sector
01 July 2016
The UK’s vote on June 23rd to leave the European Union is likely to have significant effects on real estate and construction markets in the UK and beyond, both direct and indirect. Although Brexit, should it come to pass, will likely have no impact on the UK’s largely devolved rules on property ownership and rental, or on land registration or transaction taxes such as stamp duty, it will affect a number of areas in the UK where EU rules apply. These would include energy efficiency, environmental restrictions on planning and development, infrastructure funding, procurement and employment amongst others.
It will take some time before the UK’s new relationship with the EU is known and understood. In the meantime, the vote for Brexit is creating uncertainty in the economy and consequently in real estate markets, with a likely slowdown in investment in the short to medium term in the UK market as a result. There may also be consequential effects in the real estate and construction markets elsewhere.
This briefing, prepared with the assistance of external advisers, seeks to provide an initial overview of how the UK Real Estate & Construction sector might be affected by Brexit and the daunting domestic legislative challenge the UK will face on exiting the European Union.
It represents best efforts at predicting the situation in the later weeks of July 2016.