As of 6th July 2016, the pound has fallen to a new 31 year low. The shadow of last month’s Brexit vote is having a telling effect on Britain’s property market.
Last week, six commercial property funds had suspended trading (Standard Life, Aviva, M&G, Canada Life, Columbia Threadneedle and Henderson Investors). A combined holdings worth of £15bn of UK property investment has now been locked, preventing access to funds to tens of thousands of investors.
All eyes will be closely following the remaining UK open ended property funds, most of which have already reduced the value of their funds in the days following Brexit, but all portfolios currently remain open for trading.
Although this is proving a difficult time for some, other companies are flying high. The Chief Executive of Portland Estates has claimed that the company are not only well placed to cope, but also take advantage of any current market weaknesses following the referendum.
The Industrial and Logistics sector within property was given a major boost last week, when two prime investment deals were struck at pre-Brexit values. The Amazon let warehouse in Manchester and DHL unit in the Midlands have achieved yields of close to 5% – the same expectation as pre-referendum.
So it’s not all doom and gloom. According to Standard & Poor, who two weeks ago downgraded the UK’s credit rating, Britain will not necessarily go through a full blown recession. This would depend on the Bank of England cutting interest rates to zero and investing in billions of pounds worth of bonds. It is also assumed that the UK will either negotiate a post Brexit model, similar to Norway – as a member of the European Economic Area, or alternatively get access to the single market.
Whether a recession is on the cards or not, now is the time to invest in your businesses marketing strategies. The companies that are most likely to out perform competitors during and after recessions are pragmatic – cutting costs may be necessary to survive, but it’s equally essential to invest in order to spur growth. Chocolate Ltd can help put together a long term marketing plan, getting you ahead during a slow-growth recovery and ready to win when the good times return.
If you’d like to see how we can help your business reach new audiences and invigorate your brand, call Marielle on 020 7439 9300.
For all enquiries, including new business, or to hear about our services, please do not hesitate to get in touch.