Property buyers seek contract clauses as Brexit spooks marketComments Off on Property buyers seek contract clauses as Brexit spooks market
Nervous commercial property buyers are increasingly demanding refundable deposits in the event of a Brexit vote, an industry lawyer has said.
Nabarro senior partner Ciaran Carvalho said that sellers in the City and West End were giving into the demands to “maintain momentum” in a “cautious” market.
He added: “Some owners are seriously concerned that even if we stick with the EU but it is a close call, some buyers will still be worried about the future growth prospects of UK real estate values. Some sellers have decided it is better to act now by offering refundable deposits in the event of a Leave vote.”
Jitters over the Brexit referendum led to spending on UK commercial property slumping by almost half in the first quarter.
A poll by FTI Consulting on behalf of Nabarro revealed that 68% of 302 property specialists would be “pessimistic” about the industry’s prospects in the event of Britain leaving the European Union.
Just 11% said they would be optimistic.