According to Building, a recent survey showed that 85% of the construction and real estate companies backed UK's continued membership to the EU.
The below-mentioned are just some of the implications that will affect the industry:
- The right of free of movement provided by the EU is vital in the development of the construction industry, whose key resource for labour relies heavily on foreign workers.(Berkeley chairman, Tony Pidgley estimates that 14,000/half of their subcontractors come from Eastern Europe. To reinforce this subject, the property firm JLL along with Shard's main contractor Mace and the largest engineering firm in the UK, Mott MacDonald are publicly backing the vote to remain in an official letter)
- According to CBI, leaving the EU would cost UK economy £78bn annually, having a similar effect to the last recession. Having said this, whatever affects the UK economy, is going to have a negative impact on the construction industry as well
- The above-mentioned will have a knock-on effect in terms of the inward investment from the rest of the EU (becoming less attractive for multinational companies to move its facilities here)
- Although the vast majority of construction supplies/materials are produced domestically, the high-end part of the construction market is dependent on overseas supplies
- What's more, one-fifth of construction value in high-end London projects is euro denominated – according to Building Design
- Galliard Homes, London's largest private house builder has forecasted that Brexit will raise construction costs by 15%
All in all, according to industry experts Brexit will seriously jeopardise and affect UK's construction industry's commercial viability.