Emotions Drive Desire to Remain During Brexit Uncertainty

A survey conducted by Borro of its partners in the luxury asset, property, and financial markets shows a majority favour remaining part of the European Union.

With 53% of respondents saying the UK should remain a member of the EU, it is not surprising that just under half (47%) believe that Brexit would have a negative impact on their business. The vast majority of those surveyed count small businesses and the wealthy as their clients.

“Economic uncertainty has a tendency to hit small businesses the hardest,” said Claire Barrington-Jones, Borro’s Director of Sales, “it is not surprising that our partners, whose clients are being affected the most, are hesitant to leave.”

Britain also commands a 65% share of the EU’s art and antiques market, and its major auction houses all declined to comment when contacted by Artnet earlier this June. There remains significant uncertainty on just what impact Brexit will have on their business.

“It isn’t just about money,” Claire Barrington-Jones continued, “the type of person who deals regularly in French Impressionism or Italian sports cars simply feels more of a connection to Europe. They will have European partners they work with on an almost daily basis and they know that Brexit could complicate those relationships.”

In the property sector, approximately 60% of partners were in favour of Brexit, with no consensus on how it will impact their industry. The EU has come under fire for regulation like the Mortgage Credit Directive, which Money Saving Expert’s Martin Lewis believes hinders the ability of some to remortgage at better rates.

“Brexit makes more sense for our property partners than others,” Steve Brenan, Director of Property Lending explained, “it will increase market activity in the short term, which will benefit a lot of people. On top of that, homeownership is higher in Britainthan other European countries, and some people point to it being a key driver for our economy.”

One thing common to both markets is uncertainty over just what the long term impact of Brexit would be. This is shown in Borro’s data: only 25% of respondents or their businesses have contingency plans for Brexit. Given the Lisbon Treaty gives countries two years to make arrangements before formally leaving this is not as dramatic as it seems, but it demonstrates that no matter Thursday’s outcome, there is still a long way to go.

Contact: Anthony Fernandes: anthony.fernandes@borro.com

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About the Author:

Anthony writes about luxury asset trends for Borro Private Finance.