As Brexit looms over the United Kingdom like a dark and threatening cloud and no black-and-white trade deals have been brokered to come into effect from the so-called “Brexit Day”, international banks currently headquartered in Britain are on the move to mainland Europe…
A recent report from EY (the re-branded name of Ernst & Young) suggests that Britain’s loss is Spain’s gain. Well, to be more precise, Madrid is – along with the northern Italian capital of Lombardy, Milan – at the top of banks’ wish list for relocation within the European Union.
Financial advisory giants EY highlight the fact that 57% of the banking institutions surveyed intend to move their main offices away from the UK due to Brexit. That is, if they haven’t done so already.
A quarter of companies in this sector have already made a move to continental Europe and 2,500 jobs have been created there since the Brexit vote prevailed in June 2016.
This figure rises higher still to 35% when including those banking institutions that have either confirmed their decision to abandon the United Kingdom or are currently in the process of making the transition, as at the date of EY’s survey.
The sinister-sounding and rather unconstructive tagline of “Brexit uncertainty” has maligned Prime Minister May’s strategy talks and become a buzzword for the failing endeavour as a whole.
Where before it was the rhetoric of scare tactics used to undermine Brexit negotiators, now it seems destined to underlie the fate of the UK. Moreover, it has spooked international financial enterprises out of London’s Square Mile… to the detriment of the British economy.
In terms of British real estate assets, the backlash of a no-deal Brexit would surely accentuate the low confidence in the UK housing market and cripple home values.
According to an online article published just last week by verdict.co.uk, the plummet in home values is estimated to be as much as 35%, while there would be a significant hike in mortgage rates. Read the full article here.
This unsettling news comes just three weeks after VIVA reached out to Brits, warning of the potential implications of a no-deal Brexit on 29th March next year.
Check out our Costa del Sol Property Market and Brexit page for more detailed information on what it means for you if you are British and why the sunny Costa del Sol is a rewarding area for property investment… especially in the current market conditions.