Following June’s referendum outcome, the United Kingdom have announced that they are to leave the European Union just over 40 years after joining (what was then known as) the European Economic Community. With so much press and media coverage suggesting that a Remain vote would win, much of the nation was shocked on a day that saw David Cameron resign from his post of Prime Minister immediately. Despite also backing the Remain Campaign, new Prime Minister Theresa May has insisted that the UK will leave the EU and she intends to invoke Article 50 before the end of March 2017 and the UK will have officially left by March 2019.
The referendum outcome has certainly divided the nation, no country has ever attempted to leave the European Union before and this means that nobody is exactly sure how many aspects of the country will be affected following the official departure from the union. A big question mark hangs over how landlords and rental properties could be affected after Article 50 has been triggered.
There are a number of international businesses who have made London their home from home, in fact London, and the wider south east area has seen a relentless demand for property within the private sector. There have been rumblings that some businesses could be reconsidering their investments and their rental of offices in the south east area. It also provides a prime opportunity that could used to build new property or reconvert existing derelict buildings into quality office space.
It is believed that commercial property to rent in the UK could benefit from Brexit, at least in the short term. Fewer people are currently likely to put their property on the market until they have a clearer view of Britain’s future outside the EU. This leaves fewer properties on the market for potential buyers to choose from and many of them are expected to turn to private rental property instead. As a result, landlords are generally in a much better position to rent out their property.
While European businesses may be having second thoughts about investing the UK, a number companies from the Middle East and Asia have expressed interest in buying a bulk number of properties that would become available as homes and offices to rent, providing a wider range of rental properties for potential tenants to consider, and choice should hopefully keep the rents competitive.