What does Brexit mean for the commercial property market? Matthew Bowen from Aitchison Rafferty explains
PUBLISHED: 17:58 01 July 2016 | UPDATED: 17:58 01 July 2016
For a while now the Brexit vote has caused uncertainty in the general economy, and consequently the commercial property market. Some companies, particularly the larger firms, put their property requirements on hold for a few months with the expectation that, with a ‘remain’ result, things would pick up at pace thereafter.
The result on Friday led to a lot of shock and the phones and emails in our office were very quiet as everyone tried to take stock. The dust has started to settle over the weekend, and whichever way people voted life does need to go on. We have to work together now to continue to maintain a strong economy.
The implications of the vote won’t be known for a while, but in the meantime medium and smaller sized firms will continue to need to expand, contract and relocate according to their business needs. Larger firms, though, and those dealing closely with foreign markets, may have more uncertainty until the political situation is clearer.
The economy and the banking sector is stronger than it was in 2008, and with interest rates likely to remain low or even be cut this should help maintain a strong sales market.
On the leasehold side, rents are again likely to remain strong as there is still a general shortage of good stock within the Hertfordshire region.
Things therefore don’t look as bleak as perhaps first feared, and we haven’t had any deals falling through due to Brexit, but it is the general economy which will continue to be the major factor affecting companies and individuals’ property needs.
Uncertainty will continue, but at least the result of the vote is known and, as with a General Election, this does allow people and companies to start making decisions and moving forward.
At Aitchison Raffety we have extremely experienced staff who have worked in a number of challenging times/markets and are therefore well placed to advise and help to navigate the times to come.
Matthew Bowen, Aitchison Raffety 01727 843232.