New Delhi, June 27, 2016: The British people have spoken and in one of the largest turnouts in modern history they voted by a margin of 48 per cent to 52 pc, to leave the European Union.
And with the sterling seeing the steepest drop in value in 31 years and Prime Minister David Cameron announcing that he will resign by October, many are concerned of the uncertainty of Britain’s future.
So what can we expect from the post-Brexit world? We spoke to property experts to find out what they believe will be the consequences for Manchester and the UK.
Stephen Beech, boss of property development company Beech Holdings, was a keen supporter of the ‘Remain’ campaign and believes that this will only be bad business for the Manchester as well as the UK.
He said: “”We’re gutted about the result. When I walked into the office this morning several staff members from both Britain and other countries in Europe were in tears.
“While we are disappointed by the result it reassures me that Manchester as a city voted to remain rather than leave. Sadly that wasn’t the case in other areas. But what we need now is strong political leadership.
However Stephen is hopeful that this uncertainty will lift and leave Britain with a bright future still, despite being outside of the Union.
“It may well be an uncertain few months but hopefully it will settle but I still think the property sector here will continue to do well as it has the safest and strongest legal system.
“I’ve already held a meeting with all my staff to tell them jobs are safe. Talent is welcome at Beech Holdings and that will continue to be the case. We have a diverse workforce and are proud of that.”
Stuart Law, Chief Executive ofStockport-based company Assetz Property argues that despite the uncertainty caused by the vote, it is important for investors to move forward and look outside of the capital for future invetment.
He said: Today’s result to leave the EU has only increased the cloud of uncertainty cast over the British property market, but it is not the time to just sit back and watch the events unfold.
“Now is the time for buy-to-let investors to turn their attention away from the Capital, which could experience difficult times ahead in terms of economic and currency uncertainty.
“Cash rich investors should instead look to the Northern Powerhouse, which still remains a strong contender for those seeking to protect capital and produce an income well above bank interest rates.
David Cox, managing director of Association of Residential Letting Agents (ARLA) and Mark Hayward, managing director of National Association of Estate Agents (NAEA), SAID: “The outcome of today’s EU referendum will create a period of uncertainty among homeowners, buyers, investors, landlords and developers.
“We can expect international investors to look a lot harder at the UK as a market; this will have a consequential impact upon the house building sector as investment may be stalled.
“In the short term we believe that both prices, and rents, will remain stable, but we cannot be certain about the next quarter as political instability, and market unrest, could lead through into prices in the housing market.
“We believe that the UK housing market is resilient, as is the supply chain that drives it. But as we indicated in our Brexit report last month, the bigger impact may well be in the skills necessary to drive UK housing development, and this is now a major concern for UK buyers and renters.”
Ian Waxman from Manchester-based Pad Residential echoes this optimism an believes that Manchester’s housing market will come through, despite this short term uncertainty.
He said: “This will affect everyone but the housing market will continue to attract international buyers. Investment in property is here to stay. I must say if the Government was prepared for his result there would have been a clearer plan B.
“The situation will muddle along and will cause damage until Plan B is formulated but housing will adapt to market forces.”
And Frazer Fearnhead, CEO of The House Crowd, said:”The truth is, no one really knows what’s going to happen to the property market following Brexit.
“What we do know is that Manchester’s residential housing market has climbed from strength to strength in recent years. The city sits at the heart of the Northern Powerhouse and is in receipt of ongoing investment in infrastructure.
“The uncertainty surrounding Brexit may cause a brief slowdown in rising house prices and foreign investment, but bricks and mortar is likely to remain a sound investment.
“Predicted house price growth in Manchester for 2016-20 stands at 24.6% and rental income for the period is expected to rise by 22.8%. – Manchester Evening News