Brexit vote causing uncertainty in the property market, bosses say

© Getty Images Brexit vote causing uncertainty in the property market, bosses say Bosses from some of the biggest property companies have warned of market jitters as the EU referendum looms. Industry chiefs said at a British Property Federation event last week investors and developers are delaying decisions until after June 23 because of political and economic uncertainty.

Paul Brundage, senior managing director for Europe at Oxford Properties – best known for the City’s 'Cheesegrater’ tower, said markets do not like uncertainty: “We need not to get caught up in these macro issues, but it’s hard not to be absorbed by all these things.”

He said the property industry needs to engage better with government on how political and social events affect the market but added there was the potential for his business to be “materially affected” by the referendum.

David Sleath, chief executive of Segro, said the industry was in “very uncertain” times. “The Brexit debate is a very difficult issue and there is a dramatic slowdown in the investment space because people who have got [property] to sell are sitting on their hands.”

He said large multinationals are less affected by country-specific political change, meaning Segro is still performing well. It provides warehouse room for hundreds of firms.

“Right now, in terms of investment in warehouse space, we feel quite positive. But certainly over the next few months we’re going to have a period of great uncertainty that’s going to impact investment sentiment," he added.

Investment this quarter is expected to be low, due in part to the vote. Chris Taylor, CEO of Hermes Real Estate, said: “We’re concerned about short-term political risk but for us as a team we see opportunity, because we are long-term investors.”

Bill Hughes, MD of Legal & General Property, called poll fears “somewhat overblown” but admitted the market had paused.

Analysts at Liberum said last week “uncertainty is the principal short-term negative for property”.

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