The Chief Executive of a leading UK housebuilder has warned of “severe consequences” to the British property industry if Britain decides to leave the European Union at the June EU membership referendum.
Andy Hill commented:
“A Brexit would have severe consequences for the British property industry and economy in general.
“As Europe’s largest powerhouse, our economy is very much strengthened by our position within the EU, which brings numerous benefits that largely outweigh the costs.
“Exiting this arrangement will likely result in a largescale slowdown that I believe will take many years to recover from.”
Hill highlighted the government’s forthcoming abolition of mortgage interest rate relief and the 3 percent stamp duty hike on second homes had resulted in a general decline in transactions and the company has seen a lack of consumer confidence in homes priced upwards of £600,000.
“Many of our potential customers have put off their decision to move further up the ladder until the result of the EU referendum is known and it is my belief that a vote to leave will only further deter investment in UK property.
“It is widely acknowledged that we need to build more homes more quickly, with more than 1 million required by 2020.
“Without investment coming into the UK at current levels however and demand diminishing significantly, developers would likely pull away from building more homes and this figure will be incredibly difficult to meet.”