MAKING A SUCCESS OF BREXIT
Because many planning regulations are domestic, it is easy to assume housing and real estate businesses are isolated from potential changes after the UK leaves the EU, but the reality is more complex than that. While stamp duty land tax, conveyancing, and formalities such as leases and tenancies are largely domestic, there are many relevant policies which stem from the EU. These include: insolvency practice, insurance, regional development policy, energy and environment, financial services, land use, health and safety, economic managements and product standards – among others.
There is also significant interest from the housing and real estate sector in the future of public procurement and about the future of EU financial services regulation, since much UK real estate development is financed by equity and/or debt, and there are a large number of pan-European real estate funds that are managed in the UK. Any changes in any of these areas must be handled with care, in close consultation with business, and with smooth transition from EU to UK competence.
It will be crucial over the coming months that the UK's openness is promoted abroad. Openness is one of the key factors attracting real estate investors to the UK – alongside relative political stability, rule of law, transparency and domestic flexibility. The reputation of the UK as a place to invest in, trade with, and work in are all intertwined.
Ensuring continued investment for infrastructure projects across the UK will be key for the real estate sector, since they are a necessary prerequisite for successful housing, office, retail and industrial developments. The UK currently receives funding from the EU
for infrastructure projects. It is important that a drop-off in the support for building and development of housing is avoided, given the serious shortage of houses in the UK which affects both individuals and businesses.
For housing and real estate companies reliant on a stable financial services sector, it will be important to secure temporary transitional arrangements to allow both UK and EU financial services firms the time to adapt to any changes in our trading relationship. This time will ensure that all of our financial services firms will be able to continue to provide products and services to their clients in the housing and real estate sector.
For housing and real estate at the CBI, contact: Fiona Geskes on 07469 155 269 or Fiona.Geskes@cbi.org.uk