Brexit is not what most property consultants would have chosen but we now have to take stock, move on and maybe find opportunities. The keys issues for commercial property are uncertainty and funding.
No market likes uncertainty and we are bound to see some short term stagnation as people reflect on their individual positions. Pre-referendum we had seen the heat rise resulting in a shortage of supply. The pause may relieve some of that heat and increase supply to a more balanced market.
Possibly a more pressing problem will be the delivery of new employment space much of which has been funded by the EU. It’s crucial for the continued improvement of the local economy that the central UK government fills that gap. It’s critical that our MP’s, especially those who voted Leave, lobby Westminster to ensure the promises on funding are met.
House building is in a similar position. A continuation of the first half year demand for new homes could have resulted in cost inflation. The uncertainty over peoples jobs and incomes will dampen demand for a while which will again relieve pressure. BCIS are predicting a slowdown in building which will curtail cost inflation and free up labour which had become scarce in some areas.
The key issue is to reduce the uncertainty as soon as possible so we take up the opportunities as they become apparent.
About the author: Greg Oldrieve is head of development services at commercial property consultancy, Vickery Holman.