Brexit shakes MPs’ confidence in UK business investment

The British Property Federation has published new research showing that three-quarters of MPs believe Brexit will adversely affect UK business investment. Nearly half of MPs (49%) say this impact will be significant, according to the research carried out by ComRes on behalf of the BPF. The BPF is urging government to work with the property industry to maintain business confidence and drive economic growth. The property industry represents 21% of the UK’s total net wealth at a market value of £1.6tn, and maintaining business confidence and investment is fundamental to the industry’s future health. Following the General Election result, government must maintain momentum on an industrial strategy for the UK and on delivering homes of all tenures, the BPF said. Although the MPs polled believe delivery of new housing will be affected by Brexit to a lesser degree, when compared to business investment and economic growth, other barriers to housing delivery also remain. More than a third (35%) believe local authorities do not allocate enough land for homes in the UK. Critically, the research signals that a multi-tenure approach to housing is becoming more universally accepted, with 75% of MPs showing support for the build-to-rent sector. BPF chief executive Melanie Leech said: “This research puts MPs’ confidence in the UK economy under the spotlight. Nervousness is not surprising given that we are entering uncertain territory at the start of the Brexit negotiations but we must be careful not to talk ourselves into a self-fulfilling loss of confidence. The next government must take the right actions to build a successful UK economy for the future. “Real estate has a significant contribution to make and we urge the government to work with our industry to maintain business confidence in the UK and drive economic growth; provide fair, competitive and stable tax, regulatory and planning systems; invest in infrastructure and free up public sector land; help us to address the skills shortage in our industry; and support more housing supply across all tenures.” To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette