Britain votes to leave #EUDigital Editor
Today, Friday 24th June 2016, marks a historical day in British history. The Britain people have voted to leave the European Union – the leave campaign winning by 52% to 48% remain. England and Wales voting strongly for Brexit, while London, Scotland and Northern Ireland voted to remain. There was a 72% voter turnout, the highest for amount of voters for an election since 1992.
Consequently, David Cameron, Prime Minister, has decided to step down from his post in October having lead the remain campaign from the front.
Overnight the market has reacted to the results, with the pound falling more than 10% against the dollar, to a three-decade low and The London Stock market has plunged more than 8%.
As the property industry reacts to the reality of the result, it is likely the cost of funding will increase and property values will fall.
Meanwhile, others are over the moon with the result, namely Nigel Farage, leader of the UK Independence Party and king of the soundbite, who called the outcome a “victory for real people, a victory for ordinary people, a victory for decent people,” however it is clear that Britain is to face a lot of uncertainty as we begin the process of leaving the European Union.
Alan Tripp, Head of UK, LaSalle Investment Management said “Whilst we view the long term impact of Brexit as being broadly neutral we expect markets to overreact in the short term. Early capital market signals seem to indicate that this may well be the case and real estate performance objectives may now come under considerable strain in the next 12 to 24 months.
JLL’s UK chief executive Chris Ireland also commented on the outcome, saying, “In the short term we may see a weakening in occupier demand. The impact on rents may be limited by tight supply, but activity will be adversely hit while initial uncertainty about direction and timing continues.”
Despite the speculation surrounding Britain’s future, industry leaders are attempting to reassure the market that it will continue to attract investors.
However, for now many businesses will hold their breath to see how this will play out, and what Britain’s future holds.