Will Brexit happen? How should businesses plan ahead? What can the government do to restore investor confidence in the UK? These are the questions James Max poses in his talkRADIO interview with John Slade.
John Slade, Non-Executive Chairman of Duff & Phelps’ Real Estate Advisory Group, weighs in on how the current political landscape – amidst Brexit renegotiations and unrest within the Conservative party – is impacting real estate investments in the UK.
Ultimately, John reassures that the investment community – particularly the international investment community – is under the impression this will eventually be resolved. Despite Brexit and the ambiguity it causes, in comparison to other markets around the world, the UK is still relatively stable.
In fact, up until the last two months of 2018, people were investing heavily into real estate in London, reports John.
However, there is still short-term uncertainty to take into consideration. Without knowing institutionally what direction government is headed, it's no surprise people are taking a pause, John concedes.
Whether investors, especially those buying in foreign currency while the pound’s strength has diminished, could take advantage of this pause, is a matter of intent and expectation.
There could still be “an immediate loss of value”, warns John, since real estate in the UK is a long-term investment medium. You will likely see a decline if you are looking for a short-term investment of 6 months to a year, he explains. A long-term mindset is the one you should be taking when investing in anything in the UK now.
Whether we leave the European Union or not, fundamentally, real estate seems to be safe. Instead the true threat could be the change to a Labour government, which John perceives as, "very detrimental to businesses, because they are not seen as a business-friendly party."
Among the different understandings of Brexit, how it will manifest, or even how prepared UK’s business community is, John is not worried. "The actual Brexit thing itself is not the short-term issue. The lack of decisiveness is the issue in the market place at the moment," states John.
If businesses could articulate to the Prime Minister what they needed, John says simply, “We need to fast-track the trade deal.” Concessions must be made, because ultimately, it is his view that the longer this uncertainty lingers, the further potential for short-term investment loss in the UK.
Listen to the full interview below.
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