Brexit and loss of access to the European single market can bring the £500 bn (€577bn) infrastructure pipeline and the real estate market in the UK to a standstill, the Royal Institution of Chartered Surveyors (RICS) has warned.
In the week which saw the UK government officially started divorce proceedings from the European Union, RICS said that maintaining free movement of labour should be a priority in the upcoming negotiations between Brussels and London.
RICS figures show that the UK construction industry employs 176,500 EU citizens, around 8% of the total workforce. ‘A loss of access to the European labour market has the potential to slowly bring some of the UK’s biggest infrastructure projects to a standstill,' said Jeremy Blackburn, head of UK policy at RICS. ‘Unless the free movement of skilled labour is secured during negotiations, we believe that the UK’s infrastructure pipeline may be under threat.’
RICS calls for alternative plans to be put in place to protect the property and construction sectors. It suggests, for example, that a future British talent base be created by stepping up initiatives like apprenticeships. But in the meantime action is needed because the UK construction industry is already ‘in the grip of a skills crisis’, it stresses.
RICS is asking the British government to set out a clear timeline and put interim, transitionary arrangements in place to avoid any potential ‘cliff edge’ and ensure investment continues. ‘Unless access to the single market is secured or alternative plans are put in place, we won’t be able to create the infrastructure needed to enable our cities to compete on a global stage,’ Blackburn said.
The government should ‘seek out and attract private investors’ to help secure the difficult transition and ensure the future of the sector, according to RICS.
In recent weeks the Property Industry Alliance and the British Property Federation have voiced similar warnings, stressing the importance of maintaining confidence in the UK as a good long-term place to invest in the real estate sector. Overseas investment in UK property is a ‘highly significant driver of value and productivity and must not be put at risk by Brexit,’ the Property Industry Alliance said.
