How will ‘Brexit’ affect investment in UK property?
As the UK-EU referendum looms, many Northern Powerhouse investors are wondering how a potential exit from the EU could affect their investments.
With conflicting reports have recently published, including The Yorkshire Post stating “Brexit poses ‘serious threat’ to UK property investment”, while the Manchester Evening News reports that Boris Johnson has said, “Brexit [will be] good for [the] Northern Powerhouse” we’re becoming increasingly confused as to which result would be better for the UK.
As a result, major questions are being raised. Would a move out of the EU have a negative impact on investment in UK property? Or could the region benefit from large sums of money that’s currently being sent out to Brussels?
Speaking at the official opening of Aldermore Bank’s city centre offices, James Wharton, the UK’s minister for the Northern Powerhouse shared his views on how ‘Brexit’ could affect the Northern Powerhouse. Wharton announced that he would be voting to leave the EU, and argued that a leave vote would have no negative impact on Manchester’s vision or funding, instead providing increased opportunity to invest the UK’s own money in the Northern Powerhouse initiative.
The Minister showed confidence when quizzed on the role of EU funding in the success of the Northern Powerhouse, and whether a leave vote would mean the loss of this funding. He maintained “We are a huge net contributor to the European Union. If we were to leave we would have much more of our own money to spend on our priorities. And we would have control over how that is done”; a view echoed by former London Mayor Boris Johnson while addressing a crowd of Vote-Leavers at the Old Granada Studios in April.
When asked about the current progress of the Northern Powerhouse initiative, Wharton stated: “There is so much happening and everyone I have met is talking about the positive things that are happening in the economy in Greater Manchester and the optimism they have for the future.”
While claims regarding how Brexit will affect the UK are largely speculation at this point, it is reassuring to note the confidence of the UK’s Northern Powerhouse minister in the UK’s ability to prosper whether in or out of the EU.
He said: “I think this country will succeed whether it is inside or outside of the European Union.”
It is worth noting that, while the Northern Powerhouse does receive substantial financial investment from the EU, it has also attracted high levels of investment from countries outside of Europe.
Whether the UK public vote to remain in or leave the EU, it is clear from James Wharton’s comments that the government’s enthusiasm and dedication to the Northern Powerhouse initiative will endure.