Brexit - the Potential Implications of Leaving the European Union for the Real Estate Sector
The vote to leave the European Union will not have an immediate legal impact on the Real Estate sector, as individual nations have continued to operate separate systems of land law
Indeed, the regimes that apply in Scotland, and England & Wales remain completely separate.
Further uncertainty on investment decisions expected
However, the Real Estate sector has already been affected by uncertainty over the past few months, and this will continue in the medium term with an accompanying affect upon investment decisions. Occupiers and landlords considering their strategies will need to consider lease exit and renewal arrangements to assess how much flexibility they have. If you need help with this, our nationally known property management team can quickly advise you on your options.
The short term implications of leaving the European Union
In the short term, the potential volatility in the capital markets and equities generally may cause UK based investors to look at investing further into property as potentially a more stable home for their funds than the capital markets. If you are considering moving your funds into property, our experienced commercial property team, which works on a national basis for property owners and investors, can help you achieve your strategy with pragmatic and commercial advice on property acquisitions.
The long term impact of Brexit
The longer term legal impact is likely to be regulatory. A portion of the regulatory change that has affected property owners and occupiers (for example The Control of Asbestos Regulations 2012) has been driven from Europe, and without this pressure, the speed of regulatory change may slow. However, this is difficult to predict (especially as the UK has been at the forefront of some of the regulatory changes ) and the impact will not become apparent for some years.