Built environment consultant Arcadis is forecasting that the decision to leave the EU could a have a silver lining in the form of boost to the residential sector.
The sector, which had been softening following changes to stamp duty by the government prior to the EU referendum, could now see renewed interest from foreign investors looking to take advantage of the plummeting pound and current market volatility Arcadis reported.
Since the vote in favour of Brexit, sterling has fallen relative to the euro by 8%, and 9.5% against the US dollar with further falls forecast before the end of the year, the consultant said, meaning that overseas buyers can now secure luxury London homes with a 10% discount.
Mark Cleverly, head of commercial development at Arcadis, said: “For a market that, in some areas, has been stuttering for some time due to ongoing stamp duty hikes taking the steam out of buyer demand, the buying opportunity presented by recent events could be a big plus. More buyers means a more buoyant market which can only be good news for the industry.”
The falling pound could bring more investors to luxury London property
Cleverly said that “several” of the firm’s clients have already reported a bounce in enquiries following the referendum.
The view runs counter to other forecasts which are reporting a more negative impact. This week CIPS/Markit survey showed activity in construction at its lowest point since the recession as projects have been put on hold.
This includes architect Make’s £400m Gotham City project in London. Make has said it was shedding 10 jobs because of Brexit uncertainty.
Gotham City is among a number of private and public jobs thrown into question after the Leave vote, including a John McAslan & Partners office and one by MSMR.
Others include two towers by PLP, 22 Bishopsgate and 150 Bishopsgate. The former is the replacement for the Pinnacle, which fell victim to the last recession. It was dubbed The Stump after work stalled at nine storeys.
I thought the ‘Brexit’ vote was to improve the lives/wealth of the British citizens, not for the get rich quick foreign investors!
Why aren’t British investors doing more and investing in their own country (if they still live here)?