U.k Investors Flee Property as Brexit Effect Hits Home

u.k

U.K. asset managers are beginning to freeze withdrawals of funds in the real estate sector of the economy — in an effort to halt the outrageous outflow of funds that could worsen one of the pillars of the U.K. economy.

But with consumer confidence dawdling by the day, investments in the real estate are projected to drop drastically in commercial property market, partly as a response to weak consumer spending and economic outlook. All of which could push the economy towards zero growth or below growth.

This, industry analysts warned could plunge London office values by 20 percent within three years of leaving the EU. Similar thing happened during 2007 and 2008 financial crisis, when withdrawals plunge property values by 40 percent, forcing real estate funds to suspend operations.

A total of seven funds has halted redemption since the June 23 referendum, while one of them, Aberdeen Fund Managers Ltd, said investors are given 24-hour to reconsider their decision as they will be paid based on current market value.

“Shareholders wishing to withdraw will do so at the current price in order to reflect current market value,” the Firm said.

Sighting a period of uncertainty and economic downturn, Bank of England governor Mark Carney announced easier monetary policy to curtail tremors of the post-Brexit.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

Be the first to comment on "U.k Investors Flee Property as Brexit Effect Hits Home"

Leave a comment

Your email address will not be published.


*