Whilst Property, by its nature, has a strongly local flavour, Brexit has the potential to impact many aspects of Property in the UK.
In residential Property:
- Sterling valuations are influenced by changes in demand and confidence
- Affordability for overseas investors is influenced by sterling exchange rates
- There is potential for changes in ownership regulations, taxation and Government support
In commercial Property:
- Occupancy rates and achievable rents are dependent on business confidence
- Central London in particular is in competition with other leading global capitals as a preferred location for business, notably in financial services
At this stage, there have been no direct Brexit-specific changes to the regulatory environment.
PwC notes that, for the time being, uncertainty prevails, and this may have consequences for yields and financial reporting. Legal and fiscal implications also depend on future agreements between the UK and the EU, but can to some extent be assessed by analysing current structures and future scenarios.