UK prime minister Theresa May will stand down as leader of the Conservative party on 7th June - a victim of her government’s failure to deliver Brexit. With no resolution yet in sight, the real estate sector continues to deal with ongoing uncertainty caused by the nation's decision almost three years ago to leave the European Union.
Property investment and finance professionals are voicing their ongoing discomfort over Brexit given prime minister Theresa May's resignation.
The race to succeed her is well underway and is expected to take six weeks, with May remaining in Downing Street until a new party leader is chosen by members from two candidates selected by Tory MPs. Her successor will be selected almost entirely over their stated approach to Brexit and whether their approach can unite the Conservative party.
The uncertainty has prompted various people within the UK property and finance arena to vent their frustration.
Paresh Raja, CEO of Market Financial Solutions, said: ‘May's resignation delivers a significant blow not just to the Government, but the property sector at large. Our politicians have failed in their attempts to manage Brexit, and with the Tories now preparing for a leadership contest, this poses more questions than answers.
‘At this critical point, what the UK now demands is the leadership and resolve to ensure that progress can be made. Failing this, businesses and investors will remain in the dark, unable to plan for the future. The UK is currently facing one of the country's biggest housing challenges, and with a divided government, there is a real risk that this fundamental issue will continue to be overlooked.’
Melanie Leech, chief executive of the British Property Federation, said: 'It is regrettable for the Prime Minister – but also for the whole country – that she has been unable to build the political support for a Brexit deal. The property industry stands ready to work with whoever her successor may be and calls upon them to act urgently to unite the Conservative party and the House of Commons to avoid a No Deal Brexit.'
Jerald Solis, director of Experience Invest, said: ‘Theresa May's position as prime minister has been on shaky ground ever since her Brexit deal was first rejected in parliament, so while this is not a completely surprising development, it nonetheless casts further questions over the Government's ability to manage Brexit.
‘I'd like to see housing included as part of the upcoming Tory leadership contest, but the unfortunate reality is that most of this campaign will be dominated by discussions on Brexit. At this critical juncture, our next prime minister must demonstrate resolve to not only deliver some kind of solution to Brexit, but also have a broader vision to address the long-term challenges facing the UK, including the housing crisis.’
Not all commentators are seeing things negatively, however.
Jamie Johnson, CEO of FJP Investment, said: ‘Uncertainty does not bode well when it comes to implementing a financial strategy, and for nearly three years, investors have been left in the dark with little guidance from the government. Now, with Theresa May's resignation, we will no doubt see some movement in financial markets as they react to this news. However, this is not a cause for concern, as there could be greater long-term benefits of today’s announcement.'
He added, ‘Once the markets have adjusted to the news, the government has the opportunity to use the leadership contest as a means of delivering greater certainty over Brexit. By knowing just what options are on the table, investors will be in a better position to effectively plan for the future. This means appointing a leader who can unify the Tory party and provide the leadership and guidance the country is currently calling for.’
