In an interview with Lexis®PSL Property (24 September 2019) property partners Kate Corke, Laura Conduit and knowledge lawyer, Shona Ray Ferguson, discuss the impact of a no-deal Brexit be on the property industry.
The interview explores the risks and potential opportunities for investors, developers and operators; and the steps property lawyers and their clients should be taking now.
This article was first published on Lexis®PSL Property on 24 September 2019.
Property analysis: Can the property industry weather a no-deal Brexit? Kate Corke and Laura Conduit, both partners, and Shona Ray Ferguson, knowledge lawyer, all in the property department at Farrer & Co, suggest
that, in the short term at least, leaving the EU without a deal is expected to dampen market confidence and the willingness of all parties to take risks.
How would property deals be impacted if the UK left without a deal?
The vast majority of property law is domestic, so, from a legal point of view, property deals will carry on much as they currently do. Even where our domestic legislation originated in the EU, for example much environmental law, the EU (Withdrawal) Act 2018 ensures that this legislation will continue to have effect as it applies on the date that the UK leaves the EU.
However, aside from any legal effects, property deals will be affected by the market conditions caused by a no-deal Brexit and its impact on the positions of individual parties to a deal. For example, for companies that are heavily reliant on importing goods from the EU, a no-deal Brexit might affect the viability of their business due to delays at borders and the trade tariffs which are expected to apply, and, as a result, they may be less likely to invest in property or may want to renegotiate the terms under which they occupy property. Similarly, some property-holding businesses that are
reliant on migrant labour (eg, agriculture and construction) could be negatively affected by the end of ‘free movement’.
In the short term at least, leaving the EU without a deal is expected to dampen market confidence and the willingness of all parties to take risks.
Read the full article here.