Property experts fear effects of an EU referendum on London market
An in/out referendum on the European Union is the election policy that poses the biggest threat to the London property market, according to a vote of leading property experts undertaken by CBRE.
Four in 10 (44%) of the 190 experts surveyed on 6 May were concerned about a potential referendum, included in the Conservative and UKIP manifestos, followed by 38% who saw the Labour policy on increased taxes on non-doms, mansions and top earners as potentially the most damaging.
Investment in infrastructure (41%) and increasing housing supply (39%) were the key means of securing the future of London’s property market, according to the audience of property experts, representing investors, landlords and occupiers.
Although transaction volumes in Central London immediately before and after previous elections have not shown a marked rise or fall, there are some key policies which are cause for concern for the property industry in 2015. Membership of the European Union has been highlighted as an important factor in keeping London attractive to businesses from Europe and beyond, so any threat to this status quo could have unintended consequences for the capital’s future prosperity.Resolving issues close to home such as investment in new infrastructure and the housing supply required to accommodate London’s continued growth, are challenges our audience felt would have a material impact on London’s future status. Any new government will need a clear strategy to deliver on these very real problems.