Shortly after the referendum vote to leave the European Union, there were predictions that there would be a slump in the property market. This has not happened, but a negative effect could happen in the future.
In London, tenants are continuing to commit to renting commercial property in prime locations. Major buildings such as Landsec’s Walkie-Talkie and British Land’s Cheesegrater have been sold for
substantial amounts. These deals show that there is sustained confidence in the UK property market.
Manish Chande, writing for Property Week in March 2018, expressed a cautious note. As the Brexit negotiations continue, he expects confidence levels will wane. He said:
“We’re bracing for something of a delayed aftershock from the vote, as impatience over a lack of clarity heightens. In particular, assets in and around central London that aren’t necessarily iconic, yet have good long-term prospects, will fall prey to this sustained uncertainty.”
He noted that some tenants are delaying decisions about renting more commercial property until the Brexit negotiations are clearer. However, he feels that after the Brexit deal has been finalised, there will be renewed interest in commercial property.
The UK is politically stable and is attracting overseas property investors, particularly those with high net worth who see London as an attractive location for their property investments.
Investors who are not put off by the Brexit negotiations have a wide choice of commercial mortgages deals. A mortgage broker can source the best deals for investors.