Tuesday, 21 June 2016

EU referendum - short and sweet


Whether you are voting to stay or voting to leave it doesn’t matter – the key is that you vote and have your say! There is nervousness from all sides but to me and more broadly an entire industry is on tender hooks as they brace themselves through the current uncertainty and potential impact of which ever decision the UK takes.

The house building industry is clear – there will be pitfalls for both buyers and developers if a ‘no’ vote occurs. But is this simply not just because the whole EU referendum is drawing attention away from the severe lack of houses available. You can view Brexit as having little impact on general confidence levels as the majority of UK sales are to UK residents and the undersupply means activity levels are unlikely to be changed as demand and pricing levels remain robust.

There is the argument though that Brexit will impact overall investment (at least in the short term) – but more broadly you can argue labour supply. It is already short and the EU supplies a large amount of that supply which is desperately needed to ensure we push on delivering houses. If we remove this supply do we bring labour shortage right back into the issues arena.

To me the supply of labour is linked to an under investment in apprentices but was mitigated by migration of skills from the continent and further afield. Implications of Brexit could simply lead to tighter regulation and therefore damage construction activity – limit supply of skills and therefore further dampen delivery of homes. We simply wait in baited breath for the outcome so we can deal with whatever the outcome is.

Feel free to contact me 0113 288 2276 or lee.a.wilkinson@uk.pwc.com if you wish to discuss this blog or anything relevant to property and construction.

 Happy voting.

Lee

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