Optimism upswing at GVA ahead of Article 50

Jo Davis, Managing Director Planning, Development, Regeneration, Avison Young, Bristol

Leading UK real estate adviser GVA has reported an upswing in market sentiment within its own senior ranks ahead of the triggering of Article 50.

GVA conducted an internal survey of nearly 1,000 UK fee-earners in February on the issues affecting them and their clients, as the political pressure-points surrounding Brexit intensify.

This latest survey illustrates the shift in attitudes since the inaugural survey 12 months ago which was piloted three months prior to the EU Referendum. The results of the latest survey were published this week.

Nearly half of respondents (45%) are generally more optimistic than they were six months ago (shortly after the referendum), with 39% unchanged in their view.

In terms of the impact on manufacturing occupier demand, respondents are much more optimistic now than a year ago. In 2016 a huge majority (69%) thought demand would decrease in the event of Brexit. Now, only 38% expect a decrease. Those expecting an increase rose from 12% to 38%.

Optimism in Technology, Media and Telecoms (TMT) demand has increased. Nearly a quarter of respondents now expect TMT demand to rise, compared with less than 10% a year ago. 28% expect a fall, compared to 39% a year ago.

Nevertheless, the view on financial services has deteriorated over the past year. 70% now expect a decrease in demand, compared with 60% a year ago.

Jo Davis, Regional Senior Director, at GVA in Bristol comments: “The triggering of Article 50 over the coming days marks a major milestone for the UK. The future consequences of Brexit are not yet fully known. Indeed the actual triggering event will cause little real change. “However this latest set of findings do help illustrate a marked shift in attitudes since the pre-referendum pessimism we saw. This upswing in market sentiment not only reflects that of our own people, but is naturally a reflection of client sentiment as well.

“Tellingly it was the younger generation, or those under 39 years of age, which illustrated the most optimism generally,” she said.