With our intended departure from the European Union having loomed over us for three years, Brexit is now anticipated on 31st October 2019.
The legal industry is worth an estimated £25.7 billion to the UK economy and the sector employs over 380,000 people. The level of economic uncertainty that Brexit has created will surely have a wide reaching impact on UK Law Firms with some commentator suggeting that a no-deal Briexit will cost the sector over £3.5 billion.
In my sector, real estate, in the short term there has surprisingly been a limited impact although some Analysts have suggested there has been a slowdown in the market with less transactions going though. Investors and lenders seem reluctant to commit to larger projects until the terms of Brexit are known.
However, whilst I have not perhaps seen the same number of instructions related to more high value transactions, particularly involving commercial finance, than previous, my Buy to Let investors and Landlord & Tenant clients have remained consistent in their instructions. Whilst there has perhaps been a slowdown at the higher end of the market the lower end is continuing to tick over.
There will undoubtedly be some longer lasting impact on the real estate sector and I anticipate that Brexit will result in considerable change. That longer term impact will be decided by whether we leave with or without a deal, and if a deal is obtained the details of that agreement. Even when that is know, the implications will be difficult to predict.
The impact will of course be informed by the nervousness or otherwise of the high street banks. The UK Government must work closely with our lenders during this anticipated period of uncertainty to ensure that lending is still available to particularly development projects and to support first time buyers to ensure the continued movement of the housing sector.
It is unfortunate that I do anticipate the economic uncertainty may result in some firm closures. However, it will be the law firms that can show flexibility and a dynamic approach to legal services that will survive, albeit perhaps a little Brexit bruised.
LLx
Legal Lass 