It’s been revealed that property investors have significant concerns over the effect that Britain leaving the EU could have on the UK housing market. The Brexit referendum occurs on June 23rd, with the British people deciding whether or not to remain in the European Union, but the potential effects of the vote to leave is already influencing the housing market.

Investors Adding ‘Brexit Clauses’ to Property Deals

Commercial property investors are already adding clauses into pre-contracts which will allow them to pull out of any deals should the UK’s people vote to leave the EU. Nabarro, a city law firm, conducted a poll of British and global property investors with collective holdings worth up to £350 billion, and revealed that over two thirds of them were concerned that a vote to leave the EU would negatively affect the UK’s housing market.

The new ‘Brexit clauses’ are a result of their pessimistic outlook, with the additional clauses added as a precaution in the event of a significant change in the value of properties in the UK. One of the senior partners of Nabarro, Ciaran Carvalho, said, “We have seen a marked increase in the number of contracts which include clauses to protect the position of buyers investing in UK real estate ahead of the referendum. Brexit is a leap into the unknown. Brexit clauses are a pragmatic, legal response to that uncertainty.”

How One ‘Brexit Clause’ Works

One prime example of these clauses at work is with Oakmayne Properties, a residential developer who have just redeveloped a forty-one storey building in London with buyers required to pay a £2,000 holding fee to secure the option on an apartment. However, they have inserted a ‘Brexit clause’ into the deals so that any buyers who are not happy with the referendum result and fear the worst can then pull out of the deal and have their £2,000 paid back.

The clause was further explained by the Managing Director of Oakmayne, when he said, “Buyers will not be required to exchange contracts until after the vote. If they don’t like the result, whichever way it goes, they will have the right to withdraw and have their reservation fee refunded in full.”

After George Osborne recently claimed that a British exit from the EU would cause prices in the UK housing market to drop by somewhere between 10 and 18%, it’s no wonder that many buyers and investors are worried about making any purchases before the referendum is completed.



Services

Property Valuations
We offer a free, no obligation valuation service. We prepare and research thoroughly before we visit your property - always by appointment. We know the correct valuation for your property because we are local experts and, in any case, the more valuations we do, the better our guide will be. Please contact us to see how we can help you.
Quality Marketing
Marketing your property starts with appealing visual imagery. Our main goal is to add a personal touch to our property photos. We have our own in-house photographer who does all our photoshoots and allows us to truly represent our vision. We make sure you get the highest possible quality so that your property stands out from the crowd.
Property Management
Let us take the strain and anxiety out of managing your property with our hands-on approach. Our landlords can be assured that we will act on their behalf and with their best interests at heart. To ensure a fast, efficient and informative service for our landlords, we have installed the latest computer technology so that clients' payments can be made by electronic transfer, followed up with a detailed statement of accounts.
Legal and financial advice
Moving house can be one of the most stressful times of your life. However we know that by using our friendly, recommended law firm, Curry Popeck, that your conveyancing work will be dealt with speedily and efficiently. Stonehouse Financial is our recommended partner for mortgages & Enra Group for second charges, investment funding or bridging.
Find out more
Relocation Assistance
We are proud to be affiliated with Aussie Man & Van removals who are a market leading relocation firm covering the whole of the UK. They provide reliable relocation services and are fully insured by the BAR to give you the utmost peace of mind while your belongings are being moved.
Find out more
Maintenance
Our maintenance partner is APS Maintenance Ltd (APS) who have many years’ experience in residential property maintenance and building. With fully certified employees on call 24 hours a day, they provide an unparalleled service and speedy response to all maintenance issues.
Find out more