Still business as usual for Barratt Homes

[Nicholas Wallwork]

Despite the fact that many had predicted a post Brexit downturn for the UK housing market this has yet to materialise. Indeed today we saw the U.K.’s leading developer Barratt Homes announce pre-tax profits up by 20.7% to just over £682 million. This figure is for the year to June 30, 2016 over which period

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[PropEx]

Why do people speak of "post Brexit" when Brexit hasn't hasn't happened yet?

 

[Longterminvestor]

I think they mean "post brexit" as in after the vote.

 

[PropEx]

I think they mean "post brexit" as in after the vote.

Yeah, I realise that, but some people are going on about, "I told you that would happen after Brexit" or "I knew that wouldn't happen after Brexit" when the reality is, it hasn't even happened yet.

 

[Longterminvestor]

Hi @PropEx How do you see this all panning out after Article 50 has been triggered?

 

[PropEx]

Hi @PropEx How do you see this all panning out after Article 50 has been triggered?

Well, firstly, as crazy as it may sound I wouldn't be surprised if Article 50 isn't ever invoked and the UK doesn't leave. If however UK does leave, quite frankly I think it will be a disaster for the UK, certainly short to medium term. Surely it would be devastating for the City, if the banks can't "passport" to the EU then they will move their HQs elsewhere, probably to Paris or Frankfurt.

 

[nmb]

I’m not so sure it will be as big a nightmare as many people are predicting. At this moment in time the European Union is in a complete mess and I would not be surprised to see some kind of restrictions on free movement and immigration - exactly why the UK is leaving the European Union. As far as the financial sector goes, London was a powerhouse before the European Union became more entwined and will remain so into the future. If you look back over the last decade you will see many attempted power grabs by the European Union looking to diminish the reputation of London and move more financial business to mainland Europe.

At the end of the day the UK has not adopted the euro and in all honesty is unlikely to do so.

 

[PropEx]

I’m not so sure it will be as big a nightmare as many people are predicting. At this moment in time the European Union is in a complete mess and I would not be surprised to see some kind of restrictions on free movement and immigration - exactly why the UK is leaving the European Union. As far as the financial sector goes, London was a powerhouse before the European Union became more entwined and will remain so into the future. If you look back over the last decade you will see many attempted power grabs by the European Union looking to diminish the reputation of London and move more financial business to mainland Europe.

At the end of the day the UK has not adopted the euro and in all honesty is unlikely to do so.

Haha, yes, I think it is fair to say that Britain won't be adopting the Euro! The point I am making about the financial sector is how can all the big banks stay in London when London won't have "passporting", which gives them access to the European single market without restrictions? Don't you think they would move to somewhere in the EU? I agree that there have been many attempted power grabs over the last decade and the reason that I can see that they failed is because London had access to the European single market without restrictions, surely it would be a different ball game if they didn't have access?

 

[PostBrexitInvestor]

Surely the European Union needs the UK as much as the UK needs the European Union? They will have to find a compromise?

 

[PropEx]

Time will tell.

 

[Longterminvestor]

Are we not in danger of talking ourselves into a downturn/recession?

 

[PropEx]

The first 5 years post Brexit aren't going to be pretty in my opinion. People don't seem to realise how long it takes to draw up trade agreements with other countries.

 

[nmb]

I agree that the first five years will be difficult but then again current UK trading partners will not simply stop trading with the UK especially when the UK is, for example, the biggest single importer of goods from the European Union.

p.s. The EU don't exactly have a great record on trade agreements - they have been shown to be worse than useless at times.