Don’t clown around with property and the impact of Brexit
Possibly even scarier than the ugly stories about people dressing up as clowns to frighten the public, is the uncertainty regarding the future prospects of British business and where life will be when we finally leave the EU.
Within the commercial property market, the initial knee jerk reaction from investors saw some large institutional funds suspend their trading and ring-fence themselves from any flash sales, due to the shock result of opting out of Europe. However, we are now in a time where there is uncertainty and as such we may be looking over our shoulder for the next shock that comes with the fear of not knowing what might happen until Article 50 is triggered in early 2017 and the negotiations on trade start.
With money becoming cheaper to borrow and the value of the pound spiralling down from the heady heights of $1.50 to the £1 we have seen in recent months, clients are taking a more realistic and pragmatic view on ensuring their buildings are properly maintained and serviced, notably around when looking to acquire or dispose of an asset.
Investment transactions will continue in the months to come, however the need for careful technical due diligence and risk profiling means that clients and surveyors alike need to be thinking more holistically on the true condition and quality of the asset as well as the impact on day-to-day maintenance when evaluating a building or asset.
Solid technical due diligence matched with a proper planned preventative maintenance programme needs to be intertwined with the catalogue of health and safety information to keep buildings suitably packaged for sale, as the twitchy investor is going to look at ways of backing out due to the fear of what might be around the corner.
We cannot condone the clowns that look at putting on a false mask on the condition of their property, but we can expose their short comings and poorly judged decisions.
Three weeks ago, Manchester hosted the inaugural Northern Powerhouse conference, which allowed northern leaders and businesses to promote, debate and celebrate what is best across the Northern region of...