Posted by Clara Matty on 07/11/2019

Uncertainty over Brexit has deterred UK investors, research finds

New research by Godwin Finance Ltd, an investment arm of the Godwin Group, has revealed an estimated 83% of UK investors have expressed concern over the uncertainty of Brexit.  

The research, which surveyed representatives from the Group’s introducer network on the correlation between Brexit negotiations and the UK investment sector, revealed that the majority of their clients are not concerned about leaving the EU, but rather the impact Brexit uncertainty is having on the UK economy. 
 

This is supported by the fact 33% of respondents advised that ongoing negotiations over Brexit had deterred clients from investing in UK based funds, with a further 33% believing this to be a potential reason as to why clients have reduced investments. 

  • 33% of respondents advised that Brexit had impacted the growth of their business with a further 33% advising it was too early to tell. 
  • Just 17% of respondents advised that their clients hadn’t expressed concern over Brexit.
  • Respondents were synonymous in the opinion that Manchester and Leeds were the best locations to invest in property, followed by Liverpool and Birmingham.
  • When questioned on how the investment sector will change over the coming months some respondents felt London based firms will move to an EU base as a ‘precautionary measure’, where others felt investors would continue to opt for safety over uncertainty. 
On discussing the research, Andrew Mitchell, Group Investment Director for the Godwin Group confirmed: “The most important thing to note here is that individual and sophisticated investors aren’t concerned over what impact leaving the EU could have on the UK economy, but rather how the ongoing Brexit negotiations have left the UK in a weak and uncertain position.”   

“In continuing, this could potentially result in a snowball effect – with more and more Investors holding their money until we reach more certain periods, impacting the economy as a result. For those unphased by Brexit, however, now could in fact be a good time to reconsider investing, particularly in property development funds, where risk is low compared to similar investments in the market.” 

Godwin Developments was founded in 2006 with the Godwin Group formed in 2016 becoming one of the UK’s leading property developers, with a diversified portfolio of residential, commercial and mixed-use property assets. 

Launched in March 2019, Godwin Finance Ltd (FRN 819778) is an Appointed Representative of Share In Ltd, which is authorised and regulated by the Financial Conduct Authority (603332). With two initial investment products, Godwin Finance No 1 and Godwin Finance No 2, this is the first investment platform launched by the Godwin Group that provides the opportunity for eligible individuals to invest directly in Fixed Interest Bonds.