FOOD FOR THOUGHT?
PLANNING & DEVELOPMENT
After suffering an almost unanimous 60% drop in share prices following the vote to leave,
the shares in house building companies have largely levelled out around 40% below preBrexit levels. Despite the drop in value, we have not experienced any loss of appetite for
development opportunities.
Housing stock is down on previous years although it is not clear if this is related to Brexit.
This helps to incentivise house builders to fill that gap with their own housing stock.
The development of new houses is further encouraged by continuation of the existing
planning system as it is not subject to much EU regulation and takes years for any
alterations to have an effect at a local level. Developers remain confident that many
planning strategies prepared before Brexit will remain valid in the current market.
RURAL CONSULTANCY
AGRI-BUSINESS
ESTATE MANAGEMENT
Labour leadership hopeful Owen Smith has pledged to build 300,000 new houses each
year for the next five years, this is a significant increase on the current target of 200,000.
These numbers are all the more impressive when considering that in 2014 we only built
141,000 new homes. It is unclear how achievable these figures are but it demonstrates the
continuous drive to build in increasing numbers irrespective of the EU position.
SPORTING
ENERGY
UTILITIES AND INFRASTRUCTURE
In the last three years the EU put £16 billion into the UK, half of which went to energy,
transport and telecoms infrastructure. Once we are outside the EU no new investment
will be forthcoming from Europe yet the demand for utilities and infrastructure will remain
unaffected. This lack of investment may postpone some projects while funding is sourced
but is unlikely to see any proposals being abandoned purely as a result of Brexit.
The Governments National Infrastructure Delivery Plan for 2016 to 2021 sets out the UK’s
own investment strategy which will not be diminished, in the north alone this allocates
£1 billion of funding to finish the Leeming to Barton A1 Road Widening as well as starting
to dual the Morpeth to Ellington stretch of the A1 and the Gateshead Western Bypass.
Further investment is proposed for the Trans-Pennine Tunnel and the North Trans-Pennine
Link between the A1 and M6.
The Department for Transport published an Options Paper for High Speed 3 Rail Link to
the North of England and Scotland which again will operate independent of European
investment.
With regards to energy, investment in renewables has already subsided following the
Government’s reduction in subsidies. Since the vote to leave investment by UK based
companies is likely to diminish due to the depressed pound as most technology suppliers
are overseas. As questions still amass around the Government’s support for Hinckley
Point C yet the environmental commitments to close coal power plants still stand, we
are witnessing an increased reliance on gas, renewables, storage and additional lines
connecting to Europe.
There may be a brief slowdown in investment once the EU Funding ceases but investments
are set to continue in new infrastructure projects irrespective of the European position.
PROPERT Y SALES & LET TINGS
ENERGY
VALUATIONS & SURVEYS
PLANNING & DEVELOPMENT
DISPUTE RESOLUTION
If you have any questions on any of the
articles in this document, please do
not hesitate to contact
one of our offices:
Barnard Castle tel: 01833 694935
Bedale tel: 01677 428930
Leyburn tel: 01969 600120
Richmond tel: 01748 829210
Stokesley tel: 01642 710742
T H E
L A N D
&
P R O P E R T Y
S P E C I A L I S T S
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W W W G S CG R AYS CO U K