With the Conservative Party on the brink of delivering a majority government, major property investors are already fearful over the prospect of an EU referendum according to a recent survey conducted by British law firm Maples Teesdale.
According to the poll, conducted among 117 real estate investors, nearly three-quarters (73.5%) of UK property investors believe the prospect of a British exit (“Brexit”) is a real one and more than half (53.4%) believe it would be directly detrimental to their business.
Support for Brexit stands at just 23.5% and just 12.9% believe their business stands to benefit from a potential exit. However, there is widespread support for a review of Britain’s existing relationship with the EU, with the general sentiment being, “reform, but do not destroy.”
Although the prospect of a full departure from the EU is some way off resolution, 19% of respondents admitted that their investment decisions have already been influenced by it.
Neil Sagoo, partner of Maples Teesdale said: “The prospect of a referendum under a Conservative-led government casts a shadow of uncertainty over a market in which cross-border investment activity has become the norm. If trading across these borders becomes more difficult, there will inevitably be an impact on the property investment market.”
The occupier market could also be hit hard by an EU exit, according to the survey in which 53.6% of investors thought it would encourage major corporates to leave Britain.