Brexit has taught London a hard lesson

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Posted on June 24, 2016

If there’s one thing Brexit has taught us, it’s that London and the rest of the UK don’t sing from the same hymn sheet.

They don’t even sing in the same church.

London was none the wiser to the mood of the populus until it woke this morning to find its waters had been broken, messily and unwillingly.

David Cameron’s voice was breaking, Sam Cam’s head bowed sadly, Mark Carney was bravely displaying that Canadian calm, and one Eton alumni was arranging his mop, jauntily, and debating whether erecting a zip wire to the front door of Number 10 would appear crass or lovable.

Today, journalists have been busily requesting comment from industry thought leaders, and we’ve dutifully obliged. But no one really knows what Brexit means for business operations at ground level.

 

Here are a few early observations from our clients…

Mark Posniak, managing director of Dragonfly Property Finance comments:

“There will be a huge amount of hypothesising about the fate of the UK property market, but it’s impossible to know the full ramifications of the Leave vote.

“Caution, reduced transaction levels and downward pressure on prices in the months ahead are almost certain but we should not write off the property market.

“Despite the magnitude of the result, the structural supply issue underpinning the UK’s property market may well prevent prices falling materially.”

 

Jonathan Hopper, managing director of buying agents Garrington Property Finders, comments:

“The irony is agonising – that after voting so resoundingly to remain, London should see its property market decapitated by a victory for the Leave camp.

“Prime central London property has already suffered more than any other market from the uncertainty unleashed by the referendum. With a quarter of the capital’s corporate rental market driven by the financial services sector, the convulsions being experienced in the City today will filter down to the property market within days.

“Looking further ahead, the only sure thing is that we can’t be sure of much. The actual process of Brexit is unlikely to be quick or easy, but it’s the prolonged period of uncertainty that will accompany it that is likely to prove most toxic.”

 

David Lamb, head of dealing at FEXCO Corporate Payments, comments:

“Amid the hyperbole and today’s vertiginous fall, Sterling’s one saving grace is that the Euro is likely to be hit almost as hard by a Brexit. So the Pound’s collapse relative to the single currency has been mitigated as both race to the bottom.

“But against the Dollar, no quarter has been given. The Pound’s early plunge today was magnified by its late night rally – which saw it rise to $1.50 as the global markets bet on a Remain win.

“The painful question now is how far, and for how long will it fall? But talk of freefall is overblown. With Mark Carney pledging to do whatever it takes to prop up the UK economy, in many ways we’re back to where we were a few months ago.”

N.B. These are extracts. For these comments in full, please contact team@rhizomemedia.co
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