It seems as though Brexit has had an impact on everything. You may not think that the future of the United Kingdom and a split from the European Union would be too harmful with respect to shopping, but this may not be the case. After all, the outcome of the vote wasn’t really the main issue; it is the economic and political fallout that has caused the real issues. There is also a considerable level of uncertainty and uncertainty is always going to make people cautious or wonder if they are making the right decision.
This means major projects are put on hold, and Brexit is being cited for a drop in investment in shopping centres. While some shopping centres in the UK are doing well and the market appears to be booming but all is not well beneath the surface. Knight Frank, property consultants, have released their Shopping Centres Investment Quarterly and it says that shopping centre investment has stalled in 2016. The report is blaming Brexit.
Investment figures are dropping
The investment figures for 2016 show that £2bn has been ploughed into the market so far. By itself, this isn’t a bad figure but in relation to the £4bn that was invested in 2015 and the £5bn that was invested in 2014, there is a notable tail-off. There is also a further dip expected for 2017, which means that there may be a real lack of new shopping centre developments in the years ahead in the United Kingdom.
This means that there will probably be a group of people worrying about the status but there is also hope and positivity to be found in the market. This is because the fall in the value of the £ in the wake of the European Referendum vote has made the UK more attractive for foreign investors. This should lead to investors deciding that this is the ideal time for them to make their mark on the UK. This is the optimistic viewpoint for the shopping centre market in the UK but there has been praise for action undertaken in Stockport.
Ed Cooke is the Chief Executive of Revo and while he agrees that the figures look bad, he says that the figures aren’t as bad as they seem. With 2014 and 2015 being bumper years, this year has seen a levelling out of the market. Cooke has also pointed out that local authorities have a role to play in investing in shopping centres. Stockport Council purchased the Merseyway Shopping Centre in spring of this year, and this has been hailed as an example for councils across the country.
While we are primarily focused on domestic property, there is no denying that shopping opportunities impact on local life and property markets. With thriving shopping options close by, people feel more at home. Hopefully the actions of Stockport Council will drive others on to positively impact on their local area.
For all your property needs, please contact Spencer Harvey Estate and Letting Agents on:
0161 480 8888
https://www.spencerharvey.co.uk