BSRIA has carried out a recent member survey on the EU Referendum result and the countdown to Brexit.
The survey showed a high level of uncertainty and confusion remains, not least clarification of the exit deal is needed as soon as practical.
Other key points incluide a short term downturn is expected until Article 50 is implemented and there is a general slowdown in investment until there are some clearly defined plans for trade tariffs.
The survey also highlighted the need to confirm whether the UK chooses to remain in the European Economic Area and whether labour availability from the EU may be impacted on as well as free movement of resources.
Observations about important changes or potential influences upon the building services consultant market:
- The impact of the BREXIT vote is still to be determined: we are expecting a short term downturn until Article 50 is implemented and fallout from the major political party leadership issues are resolved.
- Brexit has had a sharply negative impact on an already slowing work stream: a difficult upcoming period is anticipated, and only a fast clarification of the nature of the exit deal will change this.
- “Government turmoil” may delay some infrastructure spending.
- There are effects of Brexit on office construction and investments and the willingness for companies to move into new office space.
Clair Prosser, Press Officer, BSRIA said: “One respondent was quite arch, commenting: ‘EU legislation with respect to the building industry could be of benefit once the final negotiations of BREXIT are completed and could make the industry less constrained by influences from Brussels’.”
The whole picture remains uncertain and until the negotiations start the situation will remain the same until the member countries make their own positions clear with respect to the UK. This uncertainty due to Brexit will impact on projects and investments across Europe. Overall it will reduce activity in construction.
Also EU energy policy and EPBD directives (Energy Performance of Buildings) are a cause of concern, alo0ng with the cost of importing materials is increasing, resulting in project values moving upwards.
Clair Prosser added: “There were more frank comments: ‘A loss of confidence of overseas investors – this has already occurred on some of the larger projects, though not those with German investors in particular’, but more encouraging feedback: ‘An increase in overseas investment due to value of the pound in apartments within London, maintaining the growth in apartment block construction’, finally: ‘difficult to say, we are in a funny limbo period at the moment, so don't expect much to happen positively or negatively until we enact Article 50’.”
