Dear Asian Investor,
I realise you may be concerned about the recent BREXIT Referendum outcome and that there are lots of unknowns, but here are some answers to your concerns.
I know that immigration is important and that the welcoming nature of the UK makes it a more attractive place to invest. The Referendum result reflects more of a desire to have control over immigration, rather than an absolute – all or no immigration – position. European Union (EU) rules regarding the free movement of people, has meant higher mobility from within Europe, than from other countries around the world. This means that the UK has not always been getting the right skill sets to match economic needs, or in the right areas of the country. EU policy has dictated volume and make-up in an inflexible manner. This should be good news for International trading relations around the world.
How does it affect the UK as an investment opportunity?
There are lots of infrastructure investment projects in the pipeline and already underway. For example Elizabeth Line (formerly known as Crossrail), is already underway and at an advanced build stage. This will follow through to completion. There might be less certainty, or some element of delay around more aspirational projects or those at the planning stage. For those more cautious investors, it might therefore be better to invest in areas with known projects, close to, or already completed.
If the tax environment is attractive and the costs of running a business are low, then that still makes the UK an attractive place to do business. There have been rumblings from some Global Investment Banks in London. London is the heart of financial services internationally and there are less barriers to doing business across Europe or the world, for this sector and should still mean London is attractive.
How difficult will it be to strike a deal with the EU?
Both political sides – ‘Outers’ and ‘Remainers’ – exaggerated points to try to win the vote and most people realised that. But there is a lot of truth in the economic story that the UK is a big trading partner for the EU. We buy lots from the likes of Germany. The UK matters in Europe as well as the EU. Many country leaders are ‘posturing’ for their domestic political scene as national elections loom and so don’t want to be seen to be ‘soft’ on the UK. But many nations are informally talking with the UK already.
Brexit conclusion for you the investor?
There has been market and forex upheaval because it is a big change, but also owing to the financial markets misreading the situation and getting a shock. The real impact is likely to be played out in slow motion, over a number of years and so will be more predictable and manageable. The message from many individual countries is that British tourism and home owners are a big part of countries like Spain, France, Germany, Cyprus and Poland and they would want it to stay that way. As is the reverse true in the UK, with almost as many French living in the UK as there are Brits in France. That goes for the Polish, Spanish and a host of other nationalities. Britain is still European – albeit soon not to be in the EU – and is definitely international.
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Property Venture® is an award-winning, UK-based agency for overseas property who helps people buy investment property and holiday homes in Europe, more easily and safely than they can on their own, because we offer grounded common-sense advice.
The focus is mainly greater Europe: buy-to-let and homes in Poland, UK investment property, Spanish property, Managed Leaseback in France, Cypriot property
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