Property professionals in the West Midlands are urging business leaders and politicians to avoid talking the UK into a downturn following the vote to leave the European Union.
According to leading chartered surveyors Johnson Fellows, recent political events demonstrate that it’s business as usual for the economy and for the commercial property sector.
Last month’s Brexit vote caused some commentators to predict the UK economy would suffer an extended period of uncertainty due to the perceived lack of political stability, said partner Nick Wint.
However, the appointment of a new Prime Minister and the Bank of England’s decision to hold interest rates at 0.5% appears to have steadied the ship and there are now reasons to be optimistic, said Nick.
“The news that the Bank of England isn’t proposing to change interest rates can be seen in a positive light in terms of the stability of the economy.
“Furthermore, the speed in which Theresa May and the Government has reacted to setting up a new Cabinet should add to the feeling within the economy that it is ‘business as usual’.
Birmingham-based Johnson Fellows operates in the retail, offices and industrial sectors and provides services including building consultancy, rating, valuation, agency, rent reviews, lease renewals and arbitration.
Mike Price, partner at Johnson Fellows and head of the industrial team, said: “Brexit clauses were written into some pre-let agreements but I am not aware of any being actioned.
“There is likely to be some fallout and this may be that European-based manufacturers may pull some of their property requirements back to their ‘homeland’. However, the underlying economy here is strong.
“The UK has always been an entrepreneurial country, and we still have a strong manufacturing base which needs to move products around the country, underpinning warehousing requirements.”
Nick added: “While some see the current situation as a reason to exercise caution, others will see it as an excellent opportunity to invest in commercial property. Those that do their homework and take specialist advice may find that this is a good time to negotiate a great deal.”