Upon the United Kingdom's withdrawal from the European Union, Richard Waite and Will Hurst of The Architects' Journal examine the potential ramifications of Brexit on housing, as well as energy savings guidelines currently under EU regulation.
Waite and Hurst make 10 predictions about the fallout of Brexit, four of which examine the impact of the UK's departure on future housing and construction. The value of homes will fall in conjuction with market confidence (as is customary during times of political uncertainty), but this might be an opportunity for millennials who would like to enter the market to get a great discount. According to The AJ's interview with property consultant Knight Frank, the drop in equity "could be ‘relatively swift’, however the long-term picture is less clear. As prices plunge, this ‘massive discount’ could mean an increase in purchases by foreign buyers, particularly in the capital."
Brexit could also throw a wrench in the construction cycle, as decisions are yet to be made about how (and from where) the UK will secure building materials. For example, the UK purchased 336,000 clay bricks for the extension of The Tate Modern from Germany, but easy access to quality materials in the future could have a long-term impact on the residential and commercial market, aside from just extended construction times and affordability.
The impact of Brexit on energy saving guildelines regulated by the EU is also up in the air:
Energy performance rules, which are governed by the EU under the Energy Performance in Buildings Directive, could be increasingly ignored and questions will be raised about the continuing ability of multiple nations to strike major deals on cutting carbon such as last year’s COP 21 agreement in Paris.
Read the full article and eight other predictions on The Architects' Journal >>