Research shows senior property professionals see Brexit hitting house prices but not hurting developers’ ability to get funding.
Findings from MRI Software, a global leader in property technology solutions, shows that while the majority of senior professionals in the property industry believe Brexit will cause housing prices to fall, most are largely unfazed about the impact on investment in the sector – one of the most important in the UK economy. The research draws insights from 140-plus CEOs, directors and top managers from different parts of the industry surveyed ahead of the series of “meaningful votes” the House of Commons has held on Brexit.
The sector-wide survey reveals that three-quarters (76%) of senior property professionals believe that Brexit in any form will not seriously hamper the ability of UK industry players to get the funding they need to develop properties – including 94% of the property investors, owners and developers.
Other top-line findings on the Brexit research include:
- More than two-thirds (68%) of senior property professionals say that as long as a “Soft Brexit” is achieved, the UK property industry will continue to have “good access” to funding for property development
- Less than half (44%) say a “Hard Brexit” would “seriously hurt” the ability of the UK property industry to get the funding it needs to develop properties
On the consumers side, over half (58%) of property professionals expect house purchase prices to fall as a result of Brexit – although a significant proportion (42%) are convinced they will not. Only just over a third (35%) expect Brexit to drive reduced rents and almost two-thirds (62%) think Brexit will have a minimal impact of the rental market overall.
Dermot Briody, Executive Managing Director, Europe at MRI, notes: “The survey reveals confidence among senior property professionals that the industry can ride out Brexit, reflecting a generally positive outlook that it can find opportunities amid market disruption. We see in the findings that few of the property experts see Brexit hampering the industry’s ability to get the funding it needs for development – even with a hard Brexit.”
“The one cautious note struck in the results was the fact that a majority see Brexit likely to cause housing prices to fall – but even then, more than 40% do not. And close to two-thirds see it having only a minimal impact on the rental market. This is an industry that has seen more than its fair share of ups and downs and, once the new market environment is established, it will be moving forward and looking to take advantage of openings.”
The Brexit research is part of a broader survey that also looks at other key issues in the UK property sector. It took in responses from key players across the property industry – from investors, owners and developers to consultants, contractors and property managers to sales & lettings agents, service providers and business occupiers.