Before the recent general election, our real estate market was facing some uncertainty. This was down to the potential introduction of a mansion tax, possible capital flight if the non-dom tax rules were altered, and the usual pre-election uncertainty over the prospect of change.
The clarity of the general election result may have dulled these concerns, yet one form of uncertainty has merely been replaced by another. The fresh source of uncertainty comes in the form of the EU in-out referendum, which the Government has committed to holding in 2017. The Liberal Democrats may have vetoed a referendum, but they are out of office now so it seems likely this referendum will take place.
The net result is that for the next two years, businesses will not be sure how far they can plan ahead. This could negatively impact investment, with many business leaders opposed to leaving the EU.
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