Brexit fears ease in UK property market
Five major property services firms are dropping Brexit uncertainty clauses from their values report for most of UK assets, as market conditions steady after a sharp drop immediately after Brain’s vote to leave the EU back in June.
The original Brexit clause stated there was a reduced probability that valuers opinions of the worth of a UK property would exactly coincide with the price its potential sale fetched.
The British property market was the sectors hardest hit by the Brexit vote, and, at one point commercial property funds worth over £18bn were suspended amid high redemptions from investors concerned that property remained and prices would plummet. However, now concerns have eased with four of the seven closed funds reopening and data from the UK commercial index shows that property values didn’t fall as sharply in August in comparison to the previous month.
“We feel now there’s enough certainty in most sectors for us to withdraw that clause from all our valuation reporting,” said Robert Gray, head of fund valuations at Knight Frank.
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Henderson Global Investors has announced that it is planning to reopen its main UK property fund on October 14th.
Columbia Threadneedle and Canada Life have also lifted the suspension on their main open-ended property funds, while Aberdeen and F&C Investments have reduced the penalties imposed on investors selling holdings in their property funds.
Written by: The Team | On: September 21, 2016