The UK referendum on 23 June could actually have a huge impact on the future of Europe, and the world in general. The United Kingdom is a very integral part of the European Union. However, over the past year or so, there have been talks about Britain leaving the UK. Politicians such as Nigel Farage have made comments and speeches to the media, making bold claims about how money that was being given to the UK could then be used for furthering the interests of the country. It’s important to note that the UK referendum will be advisory and non-binding. Yet, once the public decision is taken, it will take a huge effort on the part of the British Government to reverse this decision.
Obviously, the Parliament could decide to vote against the decision. Many of the politicians are in favour of staying in the European Union, while others claim that Britain should leave. Either way, the Parliament has the chance to cast an official vote. Even after all is said and done, the Queen of Great Britain has the right to decide whether Britain should leave the European Union or not. Read more about the UK Referendum to get an idea of where certain political figures stand.
The Brexit Campaign
The Brexit campaign could have a huge impact on the British economy. Already, economists and leaders of different property companies have begun highlighting the fact that leaving the EU could have a significant negative impact on property investments. As a result, many investors and property managers are confused about whether to invest their money in the market or not. Should the UK decide to leave the European Union, property values are going to take a drastic tumble. The value of the Pound Sterling is also going to fall significantly. The Brexit campaign could actually cause Britain to go into a mild recession.
Uncertainty in the Market
Markets do not like uncertainty. For any property investor, the worst thing is when there’s political uncertainty in the country. As a result, most investors are very scared before making an investment in such troubling times. Since this is such a complicated issue, there’s been a dramatic slowdown in the pace of investment in the UK.
Brexit Proof Investments
That is one of the reasons why many companies now offer Brexit proof investment clauses. Basically, if you make an investment before the Referendum, you will be eligible to get a full refund if the property values are adversely affected. Obviously, you should check the terms and conditions before making an investment with any company. Not every company offers Brexit–proof investment clauses. However, it might be a wise idea for you to Brexit proof your investment. This way, even if property values take a tumble, you will at least be able to protect yourself from long-term damaging effects. You can just apply for a full refund.