As one of the most thriving, popular cities in the world, London is a major global hub for businesses and investors. As such, it is unsurprising that the uncertainty from Brexit pervades every part of the city, especially given the fact that so many European businesses operate there. With many EU based businesses now pulling out of the UK, it is difficult to say exactly what the future may hold for London in terms of investment opportunities. Here are some considerations.
The majority of investors will likely be waiting nervously for the UK to actually leave the EU, and they may be very cautious with their money. This is because Brexit is an unprecedented event in the UK, and no one knows exactly how the UK economy will look after the split.
As such, investment opportunities are likely to be sparse in the months leading up to Brexit, and only time will dictate how London based investors feel once the true effects of Brexit become clear.
Many of the supporters of Brexit have touted the potential benefits of leaving the EU, with most of these centred on being able to form new trade deals with other countries. Given the London is a global financial centre, it is easy to see how an influx of trade from around the world could benefit the city.
It could be the case that investors will have the opportunity to invest in new businesses which were previously unable to set up operations in London, although there is no guarantee that trade deals will be successful or be enough to replace trade lost with EU businesses.
It seems increasingly likely that specialist services like Hymans Robertson will be needed in London to help advisors/investors gauge the opportunities available to them, as well as the market conditions which influence the way businesses operate in the future.
There is no doubt that the financial/investment landscape of London will have to adapt to post-Brexit conditions, and much still hangs on how negotiations with the EU play out. As such, financial advisors may be in high demand as the UK investment landscape continues to be shaken up.
Ultimately, it seems as though Brexit will have a major impact in investment opportunities in London, with many investors likely to be reluctant to part with their money in the immediate aftermath. Only time will tell whether confidence in the UK economy picks up, so many London investors will have a nervous wait ahead of them.