Real Estate

Potential impact

  • The vast majority of practices and laws affecting real estate, whether relating to ownership, taxation, registration or transactions, are not EU-derived and so should be largely unaffected by Brexit.

  • However, there are some specific exceptions which include environmental regulations (which are more commonly EU-derived) and building and construction procurement by public bodies, which operates subject to European-wide tendering processes.

  • Another niche, but significant, exception is agricultural land carrying the Single Farm Payments for registered farmers which has been earmarked for change (with the suggestion that large landowners may receive only a capped payment). However, the status quo has been guaranteed by HM Government until 2020, even if funding has to be local, not European

  • More wide-spread impact in relation to real estate is likely to be felt in the markets themselves with the potential for adverse effects on rental values and yields, for example in the office buildings market if financial and other service sectors feel the effects of Brexit.

  • The drop in the value of sterling, coupled with the stable political environment and a reliable Land Registry and excellent professional services, seems likely to result in continuing growth in foreign investment as money from overseas continues to flow strongly in the UK real estate market.

What to do at this stage

  • If your business is sensitive to the risk areas we’ve highlighted, you just need to bear in mind the potential or changes in regulation.

  • It is possible that in due course public procurement will become an easier, not a harder process, but no immediate change is anticipated.

  • Remember that it is unlikely that environmental regulation will lessen; the UK prides itself on being at the forefront of this compliance area.