Member Article

Will Brexit Affect the Self-Build Trade?

Brexit and the uncertain impact it will have has left many industries in limbo, unsure how the changes will affect them, how trade with Europe will work and even how trade around the world will be effected. For the self-build trade, what are the main concerns and possible changes we may see post EU-membership?

Uncertainty Looms

At the moment, there is a sense that many projects are on hold until we see what changes are going to happen and what their impact will be. The construction industry as a whole has a sense of wait and see, with the question of work permits being one of the big ones.

Many businesses use people from abroad to work on projects, both self-builders and construction companies and if the system of work permits changes, this may no longer be possible. This could result in a lack of available talent until more people are trained in these various areas. There is already a shortage of trained staff in most construction areas and if limits are placed on the availability of staff from abroad, this situation could get much worse.

Self-Build Continues

Reports are showing currently that demand for self-build plots remains at a high level. An example is a recent development near Hartlepool where all 27 plots were sold out in no time to those wanting to self-build a home in the area. The quality of properties that can be created, the flexibility of design and the value for money remains a strong selling point for anyone considering the self-build versus pre-made property question.

New Incentives

It is clear by the schemes announced already that the government realises it will need to offer incentives and new schemes to help boost different areas of the economy. One that will have a positive effect on self-builds is the new Renewable Heat Incentive Scheme for domestic properties. The scheme has already seen some 50,000 accredited installations and the saving of some 3.4 million tonnes of carbon dioxide, according to Ofgem E-Serve. The scheme offers incentives for solar thermal panels, biomass boilers and air and ground source heat pumps.

Ongoing Work

Many people who are planning or working on an existing self-build project have said that it is business as usual for them and the Brexit result left them with no intention to alter their plans. Most are looking at long term investments in any case, building a property to occupy for a number of years and perhaps at a later date, selling for a profit. By this time, the after effects of the Brexit vote will be passed and the economy will have once more stabilised.

The cost of construction materials has been one instant downfall from the vote and this is affecting existing and pending projects. With the weak position of the pound versus the dollar and Euro, materials from abroad cost more. However, this could boost domestic trade to avoid the cost increase and may benefit many small businesses producing local materials and services.The cost of has been one instant downfall from the vote and this is affecting existing and pending projects. With the weak position of the pound versus the Dollar and Euro, materials from abroad cost more. However, this could boost domestic trade to avoid the cost increase and may benefit many small businesses producing local materials and services. So it really does remain to be seen just how Brexit will affect the Self-Build trade.

This was posted in Bdaily's Members' News section by Stuart .