Brexit in UK Housing Sector Essay Example | Topics and Well Written Essays - 2000 words

Brexit in UK Housing Sector - Essay Example The UK construction industry generates a whopping  £90 billion yearly. This accounts for 6.5% of GDP and 6.3% of UK jobs. In general, this market sector employs more than 2.9 million people. Despite the fact that the UK construction market is predominantly domestic in nature, Brexit will affect it since a number of people from other European nations have invested in it. Consequently, aside from the EU referendum result, potential investors in the UK need to take note of two key influences on the housing market in 2016: First, the stamp duty introduced two years earlier which saw the upfront cost of purchasing a home increase rapidly. Secondly, the introduction of a high taxes on second homes. However, eight months after the Brexit vote, UK construction industry has witnessed a significant growth in terms of construction activities. According to Kierzenkowski et al new orders flooded the month of December despite the weakening pound having driven firms’ material costs to thei r highest in half a decade. For example, a recent survey showed that purchasing managers in the construction market rose from 49.2 in August to 52.3 in September. This paints a good economic picture than many hardly expected after EU referendum. Therefore, clients should consider the following factors as they look forward to venturing into the UK construction industry. Supply refers to the connection between the cost of a good and the quantity producers are ready to make accessible for purchase in a given timeframe while other factors remain constant.