Business owners expect house prices to continue to fall as a result of Brexit

Friday 14 October 2016

The UK’s decision to leave the European Union (EU) in June 2016 created a lot of uncertainty for entrepreneurs in terms of how the business world would be affected. However, small business owners seem quite optimistic about the British housing market, as reported by recent research.

According to the latest findings from the Bank of Cyprus UK, business owners predict that the British housing market will slow down and house prices will continue to fall in the aftermath of Brexit.

Around 40 per cent of business owners in the UK expect buyers and sellers of property to delay making any deals until the long-term impact of the referendum result is clear. Almost a third of entrepreneurs expect house prices to fall by five per cent over the next 12 months, while a tenth of entrepreneurs believe they will drop by ten per cent.

In response to these statistics, Kypros Kyrianou, managing director at Bank of Cyprus UK, said: “Since the decision to leave the EU the housing market has experienced a degree of turbulence, due to uncertainty.

"However, in the wake of the referendum vote and recent buy-to-let changes, there remains positive signs surrounding the buy-to-let market, with our experience showing that businesses owners are still finding this a rewarding investment.”

The sense of uncertainty surrounding Brexit still remains. However, according to the Bank of Cyprus, 51 per cent of business owners believe that revenues are to increase over the next year and 64 per cent expect access to the single EU market.

In response to these findings, Nick Fahy, chief executive of the Bank of Cyprus UK, said: “Despite the general post-Brexit blues, the UK’s business owners and small businesses remain optimistic about their prospects, which is very encouraging.”

Mr Fahy also said that while the UK economy suffered after the EU referendum vote in June 2016, business is still booming for micro businesses.
Prime minister Theresa May recently announced that Brexit negotiations will start at the end of March 2017, and the UK will officially leave the EU in the spring or summer of 2019. While the long-term implications of Brexit remain to be seen, starting your own business is still desirable for budding entrepreneurs.

By Victoria McDonnell

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