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How to Assess the Effectiveness of PPC campaigns

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When it comes to online advertising, PPC is known to be one of the most effective methods businesses can use. It helps to get your brand name out there, and basically pays for customers, rather than relying upon getting them organically.

As effective as PPC campaigns can be, there are a lot of mistakes you can make to sabotage their effectiveness. One of the biggest mistakes you can make is failing to monitor your campaigns.

Here, we’ll look at why assessing the effectiveness of PPC campaigns is important and how you can do it.

Why is assessing the effectiveness of PPC campaigns important?

PPC campaigns are designed to target a specific audience, helping businesses to attract new customers. However, like any form of online marketing, they do need to be monitored in order to establish their effectiveness.

Without monitoring how your campaigns are performing, you could be wasting money without really realising it. Even if you experience a high number of clicks on the ads, that doesn’t necessarily mean your campaign is doing well. You need to look at a number of metrics when assessing the effectiveness of your campaigns.

By monitoring PPC campaigns, you’ll get to see whether your money is well spent, whether the ads you’re creating are converting and whether any changes need to be made.

What methods can you use to assess PPC effectiveness?

There are a number of methods you can use to assess the effectiveness of your PPC campaigns. These include:

  • Keyword tools
  • Call tracking tools
  • Analysis apps

Keyword tools are mostly used to create effective PPC campaigns. However, did you know they can also help you to track the effectiveness of your ads? By keeping up to date with the latest keyword trends, you can see whether you should be switching up the keywords used in your paid advertisements. There are a lot of keyword tools out there so be sure to do your research in order to find the best one.

Another great tool for helping you to measure the success of your campaigns, is call tracking. This service is provided by companies such as Mediahawk, enabling you to measure the success of your call backs. Many businesses only track website traffic to gauge how effective their campaigns are. However, by tracking calls too, you’ll get a much better idea of where your sales are largely coming from and how your paid ads are working out for your business.

Analysis apps are also good to use. Again, there are a lot of these about with apps such as SEMrush and iSpoinage proving especially popular. They allow you to not only see what you’re doing well, but also where improvements could be made.

What metrics should you pay attention to?

When it comes to actually measuring the success of your PPC campaigns, there are a lot of metrics you can look into.

Some of the most important metrics to focus on include your ad’s quality score, the click-through rate, conversion rate and how much money you’re wasting. You’ll want to ensure you maintain a good quality score as this will determine where your ad is placed in Google. You’ll also want to check that your ads are achieving the right results. The click-through rate shows you how many people clicked the ad but didn’t take any further action. This will also show you how much money you are wasting on your ads and whether you need to make them more relevant.

Overall, measuring PPC campaign effectiveness is crucial to your business. Without it, your ads may not be generating the right results, and you could be wasting a lot of money in the process.

 

 

 

 

 

 

Property Prices Surges Near Football Stadiums in the UK

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Bridging and development finance specialists, Pure Commercial Finance, have gathered data from the likes of The Land Registry and Halifax to analyse the surge of house prices near football stadiums in the UK, and whether purchasing a property near these venues is a worthy investment.

Looking at both Land Registry Data and reports by mortgage lenders, the campaign highlights previous property surges that have taken place near sports stadiums and predicts which areas in the UK are going to see property price growth as the result of future development.

If the same average growth takes place over the next twenty years as it did between the years of 1997 and 2017, then property investors can expect an average 450% increase in property prices for the properties that are nearest Premiere League stadiums.

Pure Commercial Finance’s experts have given a tip to keep an eye out for any developments regarding Millwall FC’s The New Den, which is just a few miles away from London’s financial centre. The average property price in the same area is approximately £505,000, which has increased more than a third in the last five years, and also a huge 292% in the last two decades.

Last year, it was said that the club had appointed architects to draw up plans for the community programme, which involved pre-planning what the club requires in order to meet Premier League requirements. If the club is redeveloped in the coming years, then this will positively affect the property prices nearby.

Ben Lloyd, Managing Director and Co-Founder of Pure Commercial Finance, said:

“The statistics are compelling, it’s great to see that as a result of the development of new football grounds its proven to not only stimulate local infrastructure investment, regenerate tired or unused areas of the cities but to create an unprecedented rise in house prices in the immediate area of redevelopment.”

Nine out of the top 10 areas with the highest percentage increase have been in London, with the top three areas being near stadiums belonging to Tottenham Hotspur, West Ham United and Charlton Athletic. The average home value in the district that surrounds the Tottenham Hotspur stadium rose more than 750% between 1997 and 2017.

New Football Stadiums in the UK – Will These House Prices Rise?

The experts at Pure Commercial Finance researched the new stadiums that may be built in the next few years, or new stadiums that have been recently completed, to derive whether they think investing in a property nearby would be a worthy investment.

New stadiums being built or recently completed:

  • Tottenham
    • Plymouth Argyle
    • Brentford
    • Aberdeen
    • Stevenage
    • Accrington Stanley

Stadiums currently being redeveloped:

  • Turf Moor
    • Fulham
    • Oldham Athletic
    • Anfield

Recently Completed: New White Hart Lane, Tottenham Hotspur

Tottenham Hotspur’s stadium in North London has recently replaced their old home, White Hart Lane. This stadium has a capacity of over 62,000 and has now become the biggest club stadium in the capital.

Prior to the building work being done, there was over £100m invested in transport nearby, and the nearest station, White Hart Lane, was improved to have a similar walkway to Wembley, so that fans can get from the station to the stadium safely.

According to the Land Registry data and Halifax, the average home value that surrounded the Spurs stadium rose more than 750% between 1997 and 2017. However, Zoopla now states that the current average price around White Hart Lane is just short of £460,000.

Investing in a Property Near a Stadium – Should You Do It?

Looking at the figures from this campaign, it seems as though investing in a property near a football stadium could pay off in the future, with property investors potentially securing a profit of up to 650%.

Like anything in investment, there are no guarantees that purchasing a property near a stadium, or anywhere else in the UK would bring in a profit. However, prices of properties near stadiums in London and the South East seem to be increasing faster than anywhere else in the UK, with the top nine being London-based districts.

This is also down to the increase of coffee shops, restaurants and improved transport links that have been put in place to support the sporting fans that visit the area.

If you need further advice, or you’re in need of a bridging loan in order to invest in a property, then get in touch with the specialists at Pure Commercial Finance who would be able to help.

The Importance of Business Phone Calls in a Digital Age

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In today’s day and age, it is common for businesses to neglect the phone and instead focus on digital communications. While it is important to have digital communication, you should not overlook the value of business phone calls because they can be immensely helpful for a business for a few different reasons.

Smartphones

These days, practically everyone has a smartphone which they use throughout the day. While somebody will tend to opt for a form of digital communication if it is a business that they are unfamiliar with, you will find that many people will still make a call if it is a business that they use regularly. This is because the phone can be effective for instant communication and handling complicated questions/queries.

Personal Touch

Digital communication can feel impersonal and cold – this is not surprising seeing as often a consumer will be speaking to a chatbot. A phone conversation is important for building relationships and the all-important human touch when it comes to business. When you are able to speak to a customer on the phone it is much easier to form a connection and build a productive relationship.

Preferred Method for Older Generations

Studies show that millennials and younger generations prefer digital communication with many even fearing a phone conversation. This is the reason why it is so important to have social media, email and instant messaging options, but you must not forget the older generations as many people in these groups prefer to speak to someone by phone.

Successful Marketing

Another good reason to continue using business phone calls is that it can be effective when it comes to understanding your advertising campaigns. When you can monitor calls with phone call tracking it can be highly effective for establishing which parts of your advertising campaigns lead to phone sales. This can help you to see what is working well and what is not working so that positive changes can be made.

Brand Image

Finally, it is important that your business has a phone number which is easy to find not only so that people can quickly contact you but also for your brand image. People will be less likely to use a company if they cannot find the phone number because this seems unprofessional and even suspicious.

As you can see, there are a few reasons why a business should not ignore business phone calls. While digital communication may have taken over in recent times, it is still important to understand the value of a phone call and how it can be used to help your company to succeed and stay ahead of the competition. Digital communications will increase over time but you still cannot beat the instant communication and ability to build rapport with a phone call.

How to Make Your Business More Profitable Overnight

Whilst the constant droning over Brexit and politics has worn on the psyche of everyone in the United Kingdom; the reality for small business owners they need up their profits if they hope to survive the uncertainty.

This is not just because profit is how we discern a “successful” business from an “unsuccessful” one. It is because your very future as a business owner depends on it. As such, here are some tips on how to make your business more profitable overnight.

  • Have a Plan

This goes beyond just hoping to make enough turnover to keep the lights on. Your plan needs to encompass how your business can grow and importantly what are the key factors which determine success.

Granted, you probably don’t have the time or the resources to hire a consultancy to craft a business plan for you. But if you focus your plan to one or two pages with a clear idea what impacts your business, what you can do, and by when, you will have done more than most of your competitors.

  • Be Thrifty but Not Cheap

In business being penny-wise and pound-foolish often leads to one result – receivership. Don’t let this happen to you. Instead, focus on the costs which have the most impact for your business such as labour and raw materials. By putting your daily efforts on these costs, you will find that a great you will not only have a great impact on the operations of your business, but you’ll uncover other savings opportunities as well.

Beyond this, schedule time to review other non-core costs as these can often creep up over time and could erode the strides you’ve made in other areas. For example, if you are starting to experience increased hosting costs because your current plan doesn’t offer enough space or resources, then you might want to consider making a change.

Remember the goal is to have your fingers on the pulse of your business, not squeeze the life out of it. As such, spend most of your time focusing on those costs which make up most of your expenses and then set time on a monthly or quarterly basis to look at the bigger picture and decide what is best for you.

  • Productivity Matters

Doing more with less is another way to increase the profits of your business. For starters, you will want to focus on any obvious wastes inside your business – for example, better fleet management if own a trucking company. Affecting change on this low-hanging opportunity will not only increase the productivity of your team but it will help your business to end up with more cash at the end of each day.

Beyond this, set the expectation that good enough is never good enough in the sense that you are always looking to improve on what you did yesterday. This approach will galvanize everyone to find opportunities to grow, thus cementing any productivity gains for the long run.

  • Look at Your Pricing

It goes without saying that if you can charge more, you will make more money. However, looking at your pricing isn’t always as simple as taking up the list price for your goods and services. In some cases, you might be better served by offering a discount, while in others you might want to better target your offerings to the right customers.  Then there is the nasty matter of the competition, who can have a big impact on your pricing strategy.

When it comes to increasing your sales and profits, look at your prices and determine what is the right approach for your business. This includes looking at your competition as well as determining how much your customers will be willing to pay for what you offer.

Also, do you want to price for volume or for maximum profit?  While each option can increase your profits, it often happens in different ways. When you price for volume, the key to profitability is controlling your costs and your inventory. When you price for maximum profit, you want to make sure that you have right-sized your overheads as a higher price often leads to less volume.

  • Control Your Cash

Many small businesses get in trouble because they don’t have cash management controls. In fact, it doesn’t matter if you can keep your costs in check if 100 percent of every pound rung up doesn’t make its way into the till. As such, institute controls on who can handle cash and how often it should be counted and deposited. If possible, try to go cashless as this will decrease temptation for cash to go missing.

4 Mistakes to Avoid While Choosing Scheduling Apps for Your Business

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An important part of every business is the scheduling app or apps you use. Pick the right one and you will get the most out of your employees while boosting morale at the same time. But if you pick the wrong one you will negatively affect the work ethic of your employees which will destroy both long term and short-term profits.

So, to make it easy for you to choose the right tool(s), I have made a list of the common mistakes people making while choosing scheduling apps for their businesses. Makes sure you avoid these…

Choosing an app that worked for a friend:

Just because a scheduling app worked for a friend or their business, it doesn’t mean that it will work for you too. Every business is unique in its own way. They could be in different niches, have different employees, cultures and clients.

Therefore, if you pick the same app, it doesn’t mean that you will achieve the same results too. Instead of doing this you should conduct your own research to learn more about your company and your employees needs.

After that you can begin looking for apps that will suit your business best. You should only pick a tool your friend suggested if your research shows that it could potentially have the same effect on your business and employees.

Going with the cheapest option:

There are many cheap tools out there, but they are probably costing less because the company is cutting costs somewhere. In your business time is money.

If you choose a top quality scheduling app it will help you get more out of your employees and as a result you will generate more revenue. Therefore, the app will pay for itself. But if you use a cheap one it will make it harder for you to manage your employees. So, you will lose money.

This is why even if an app is expensive and it has some really cool features that other tools don’t that you feel will make things easier for you, you should go for it.

Not following a robust testing plan:

An app might look good initially. But it might not always be the best option for your business and your employees.

This is why Instead of just picking a tool because it looks good on paper, test it out to ensure it really is. And don’t do a superficial test, do a proper test that lasts 2 to 4 weeks.

Use it just like you plan to use your final tool to check if it really has all the features the company advertises. Get your employees to use it too and find out how they feel about it. Their opinion matters the most as they will use it more than you.

Also, test out other factors like response rates, quality of support, loading speed, etc. as they usually get ignored.

 

Most scheduling apps like this one from Deputy offer a free trial, so test as many tools as you can before you decide on the final one.

Avoiding the custom scheduling app option:

Many people avoid getting a custom scheduling app developed as it can be a bit of work. You need to hire a developer to create one for you. After that you need to test it out and get it to work. And then you need to hire someone to maintain it. This can take months and cost a lot of money. But if it gets you to standout from your competition it should be a worthy investment.

Most of the businesses out there use the same apps. They have nothing that will give them an edge. Therefore, if you get a custom one created that fits in perfectly with your businesses’ and employees needs, it will give you an edge of over the competition and you will be able to manage your employees and help them achieve better targets.

So, take plenty of time to consider this option instead of automatically rejecting it.

Conclusion

These are the mistakes you must avoid while choosing scheduling apps for your business. If you avoid them, you will most certainly pick the best one for your business.

How to develop the best Client Relationships

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Having gone to the trouble of convincing a client that you’re worth investing in, you’re left with the equally-important task of retaining them. Without loyal clients, the prosperity of your B2B business will suffer. They provide the repeat business that will account for most, if not all, of your revenue.

Retaining an existing client is far easier than winning over a new one. As such, investing a little time and energy in maintaining a healthy relationship with them will reap dividends over the long term. Let’s have a look at a few of the best practices.

Keep the long-term in mind

While it might be tempting to just take a valued client out for a string of expensive lunches, this approach can come off as a little bit shallow and desperate. They are looking for dependable, high-quality work, and if they don’t get it, no amount of fine dining is going to compensate. With that said, if you are planning a schmoozing trip, then private jet hire won’t go unnoticed.

Go above and beyond

Sometimes, you may find that clients are looking for something which you don’t specialise in. Take this as an opportunity to branch out (provided that you’re sure you’ll be able to deliver). This will not only impress the client; it’ll give you the chance to expand the core of your business into unfamiliar territory.

Be Responsive

No-one wants to hang around all day waiting for a reply to an email. If you make your clients wait, then you’ll be damaging the relationship. Now, this doesn’t mean you should sit and compulsively refresh your inbox every five minutes. But it does mean you should set up notifications for certain clients. Even if you don’t have anything worthwhile to say, simply acknowledging receipt of an email can work wonders.

Be there when things get hectic

Life will occasionally throw up an unforeseen challenge. Perhaps a client will be let down. You need firstly to make sure that you’re not the one responsible, but you also need to be ready to jump in and solve problems quickly. If they tell you that they desperately need some work turned around before the end of the week, then you need to respond positively and deliver. They may then come to you when things go south in the future.

Ask for feedback

Nobody’s perfect. The chances are that there’ll be elements of your service that clients aren’t entirely happy with. If you ask them if there’s anything you can do to make them happier, then they might well tell you about it. This, in turn, will allow you to deliver a better service to all of your other clients, and stand a better chance of retaining them.

About Roberto Blanda

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Roberto Blanda was born in 1970 in Rome, Italy. At the age of 12 he took up the sport of rowing, which he pursued for many years with much success. Aged 17, Blanda was selected for the Italian National Rowing Team. Just four years later, he was part of the squad that represented the country at the Olympic Games in Barcelona.

His rowing prowess served him well in multiple arenas, not least of which was the offer of a scholarship to study at Seattle’s University of Washington. During his time in Seattle, Blanda competed in numerous Intercollegiate races whilst studying for his degree in Romance Linguistics and French.

After graduating cum laude, Blanda initially returned to Italy – he was selected once again for the Atlanta Olympics in 1996 as part of the coxed eight team – before heading to England, where he read for a Master of Science degree in Educational Research at the prestigious Oxford University. He made college history by becoming the first and, to this day, only person of Italian heritage to be selected to row in the Oxford Cambridge Boat Race, as part of the 1997 Blue Boat team.

Upon achieving his Masters degree, Roberto Blanda returned once more to his home country to take up a role as HR Manager at the company Servier Italy. Aged 29, Blanda was promoted to become HR Director of the company, a role he would embrace for a further five years. Parallel to this position, Blanda studied for and obtained an Executive Master of Business Administration.

The motor industry beckoned Roberto Blanda, and his career pathway led him to roles with both Toyota Italy and Mercedes-Benz Italy (part of the Daimler-Chrysler Group), working for the former as HR General Manager in Rome and the latter as the Corporate HR Director. Blanda than moved to the British American Tobacco Company in pursuit of his dream of an international career.

Blanda ended up in the position of Group Head of HR for Operations at BAT, having started at the company as HR Director and progressing through Global Head of Talent.

Today, Roberto Blanda lives and works in London as an organisational performance consultant. He is also undertaking a formal coaching course to cement his experience of working as a managerial trainer.

Workchain Helps to Organise the 2019 Derbyshire Brain Game in Support of Marie Curie

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The 2019 Derbyshire Brain Game event will be held on the 10th of October 2019, raising funds for Marie Curie. The event , which is in its eighth year, will raise money to support the care of terminally ill patients in the Derby area. Over the past seven years combined, this glittering corporate event has raised a total of £245,000 for the Marie Curie nursing service.

Company Participation

The Derbyshire Brain Game is organised entirely by teams of volunteers, including representatives from Workchain, Smith Cooper Accountants, Marketing Derby and Derby College, among others. The committee is also appealing for more local business representatives to step forward and become involved in the event in 2019.

Corporate teams are invited to book a table for the event, which includes a drinks reception and three-course meal as well as participation in a general knowledge quiz. The quiz part of the evening features eight interactive multimedia rounds. Opportunities are also available throughout the evening to participate in both a raffle and a live auction, with exclusive prizes to be won.

Companies providing sponsorship for the event can choose from two packages, each of which includes branding and promotional benefits.

2018 Event

Last year’s Derbyshire event in 2018 raised a total of £51,000 for Marie Curie, which equates to approximately 2,500 nursing hours. The exciting event was the first time the quiz ended on a tie-breaker, with representatives from two teams competing in an additional round to determine the winner. Almost £14,000 was raised throughout the evening from auction bids.

About Marie Curie

Marie Curie is a charitable organisation that provides nursing care to patients in the UK suffering from a terminal illness. The hosts of the 2018 Brain Game event included Coreen Astle, clinical nurse manager, who reminded participants of how much all monies raised can mean to a person dealing with a terminal illness who would like to die at home surrounded by those they love.

Marie Curie has a team of 2,160 nurses that can provide at-home, end-of-life care, including pain management and a variety of specialist approaches and treatments. The charity also operates nine hospices and has volunteer helpers who are on hand to spend a few hours visiting patients at home each week to provide emotional and practical support where needed. As a charity, Marie Curie relies on donations and fundraising to be able to continue to offer these vital services.

Adding earnings and value to a care home

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Inspections can be a stressful time for Care Home managers and owners.

Whether it be the CQC, the Clinical Commissioning Group or the local Council.; each of these bodies can determine a Care Homes’ future existence, future earnings and future business value. 

As a Care Home manger or registered person the worst possible scenario is to be told that you are in breach of some important regulations. Alternatively, if you are judged at the end of an inspection to have a ‘Good’ or ‘Outstanding’ rating then this can add considerable future value to your earnings.

Your laundry is a key part of any assessment.

There are Regulations relating to the management and governance of your Onsite Premises Laundry and Regulatory Body’s have specific interest in this. These include:- 

Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 (Part 3) – Regulation 15. Premises and Equipment – makes specific reference to the management of Onsite premises laundries. 

Decontamination of linen for health and social care (HTM 01-04), 2013 – provides guidance on how to make your laundry comply with minimum standards and achieve ‘Best Practice’. 

Health and Safety in Care Homes, HSG220, 2014 – Makes specific reference to:- moving and handling, Equipment safety, Hazardous substances, infections and diseases. All of which is relevant to your laundry. And importantly the CQC are being tasked with becoming the lead investigators of incidents of unsafe activities in Care Homes. 

Also, if you were in any doubt as to whether the CQC were interested in this..

The CQC framework of Key Lines of Enquiry (KLOEs) – Prompts and Sources of Evidence for : Safe, Effective, Caring, Responsive and Well Led make several references to matters directly related to your laundry. 

And then of course there are other specific requirements relating to your laundry

Gas Safety (installation and Use) Regulations 1998 as amended 2018 – relating to your use and installation of your Gas dryers. 

The Control of Substances Hazardous to Health Regulations 1991 (COSHH) regulations 6,7 and 8 and The Workplace (Health, Safety and Welfare) Regulations 1992,8 regulation 5 and 6 – relating to the ventilation of your laundry and the elimination of toxic fumes such as Carbon monoxide. 

But there’s no need to get stressed This is an awful lot to think about and our guess is that you would rather you and your staff concentrated on your area of expertise i.e. patient and resident care. Aventus are experts in Care Home laundries and we can help to make your site compliant with the Regulations and government guidance, conform to Best Practice and, when it comes to your next inspection, you can rest easy in the knowledge that your laundry is up to scratch. 

Aventus has the answers! If you have any doubts about the safety, compliance or effectiveness of your commercial laundry equipment, then we do a free assessment for you and advise you how we can help you achieve your overall laundry objectives. 

Just call us on 0800 069 8082 to book your free assessment now. 

How Brexit Will Impact Real Estate Investments

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Property mogul, Ofir Eyal Bar has been a power player in the UK market, with a substantial portfolio of investments across the board. One of the most pressing questions he receives at his seminars with budding investors is the following: How will Brexit impact real estate investments? As a self-made millionaire, he has racked up considerable experience with commercial real estate, residential real estate, raw land, and mines. The Brexit saga is particularly poignant, since it has far-reaching implications for the broader UK economy, and the world at large. When Britons voted on June 23, 2016 to leave the European Union, scant attention was focused on the deeper implications of a Brexit on real estate investments. As a case in point, consider the GBP/USD exchange rate prior to Brexit, and the current exchange rate.

  • June 23, 2016 – 1 GBP was the equivalent of 1.4883 USD
  • August 6, 2019 – 1 GBP is the equivalent of 1.21805 USD

Barring asset appreciation, inflation, or other factors, the nominal value of a £1 million property on June 23, 2016 was the equivalent of $1,488,300. Fast forward three years, that same £1 million property is worth $1,218,050 on August 6, 2019. That is a net decline of $270,250, or 18.16%. This rudimentary example serves to highlight the impact of speculative sentiment on property prices, given an imminent Brexit. Of course, the Brexit hasn’t occurred yet. Prime Minister Boris Johnson is expecting Britain’s divorce from the European Union to take place by October 31, 2019. What happens on November 1, 2019 is anyone’s guess.

Why Is Brexit Associated with Massive Uncertainty?

For starters, a divorce agreement between the United Kingdom and the European Union is unprecedented. The region is built on deep commercial, political, ideological, cultural, and social bonds, many of which will be tested with a Brexit. The shock factor alone is enough to send markets into a tailspin, and the pound may not be able to sustain crashing negative sentiment. The global economy reacts strongly to what happens in the EU and the UK.

Many of the world’s most valuable courses are based there, including the FTSE 100 index, the FTSE 250 index, the CAC 40, the DAX 30, among others. Given that the global economy is a synergistic, integrated sum of its parts, a shock wave that initiates in Europe and the United Kingdom will spread far and wide. As a result, we can expect the monetary authorities (the Bank of England and the European Central Bank) to maintain a prolonged period of low interest rates to support the economic shocks that follow.

Naturally, a slow pace of economic growth will have a devastating impact on commercial real estate. This is particularly true of the retail sector, and office buildings, both industrial and commercial. Since nobody knows what the precise details of a Brexit will be – Hard Brexit or Soft Brexit – the impact of the divorce settlement could range from severe to moderate, but it will impact property prices nonetheless. As a result, the uncertainty in Europe and the UK could send a deluge of funds to the US and other markets.

This capital flight from UK and EU investors could serve to undermine the value of properties in the UK and the EU, and boost demand and prices for US-based properties. As property prices in the United States rise, so the cap rates will fall. Unfortunately, the Brexit saga belies a much deeper crisis which has been brewing in the EU for many years. That being anemic growth, high levels of unemployment, and an atmosphere that can best be described as low confidence. The global financial crisis threw Europe for a loop, and it has not recovered in the years since.  The Brexit may be the final nail in the coffin.

Cross currency exchange rates will be impacted by Brexit-related phenomena. Property markets in other parts of the world will react accordingly. For example, destinations outside of Europe such as Israel, South Africa, the United States, Australia, and New Zealand may be seen as viable alternatives. As money exits the EU and the UK at an accelerated pace, it will also serve to devalue the purchasing power of the euro and the pound. As traders and investors sell EUR and GBP, they will be buying alternative currencies like USD and JPY.

This also impacts economic growth prospects which directly spill over into the real estate market. If the purchasing power of the GBP gets eroded too much, people in the UK will struggle to make purchases. This may cause the housing market to contract, curtailing the construction of new properties and boosting demand for rental properties. Real estate tends to act in accordance with what’s available, with excess supply leading to lower prices, and reduced supply leading to higher prices. Either way, the rental market looks likely to benefit from a depreciating pound and a reduced number of housing starts.

Prognostications for the Real Estate Market

The most damaging effects of a Brexit will be felt in the City of London which has heretofore been known as the biggest concentration of financial and banking corporations outside of the United States. The London Metropolis has served many European nations as the epicentre of European trade. No other city in Europe has been able to compete with London for decades. Markets could suffer losses of 25% – 30%, with a fractious relationship between the UK and the EU. The absence of trade agreements, and a common market, customs free, duty free, and tariff free activity could prove damaging to London’s economic prosperity.

Rental prices will plummet, vacancies will increase, and closures of real estate will be the norm. This will continue unabated until such time as the UK and the EU can patch up their differences and come to equitable agreements. Nonetheless, the City of London has widespread appeal that transcends beyond Brexit-related matters. One area of growth will be UK warehouses in and around the City of London. This is particularly true with a Hard Brexit. Storage facilities will be needed, for speculative purposes. Unfortunately, no one knows precisely what the long-term prognosis of the real estate market will be, given the multifaceted intricacies we are dealing with.

One thing is likely: a Brexit is a guarantee of uncertainty. When people are scared about what’s going to happen, they are generally reluctant to spend money on big-ticket purchases. Real estate will suffer as a result. In January 2019, UK house price growth ticked over at its slowest pace in approximately 6 years, at just 0.1%. Expectations remain largely bearish, given the fears that a Brexit strikes into the hearts of investors.

Most people are playing a waiting game, hoping for the best, but planning for the worst. Since the Brexit referendum in 2016, UK home sales have effectively plateaued out, and the steady growth between 2009 and 2016 is over. As interest rates tick lower, banks will attempt to entice new homeowners into the market. Of course, Prime Minister Boris Johnson may just surprise everyone and wrench the UK out of the fire. Sage advice at this stage is to wait it out before investing in real estate at home, or abroad.

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  • tronTRON (TRX) $ 0.241382 1.48%
  • avalanche-2Avalanche (AVAX) $ 36.65 1.5%
  • the-open-networkToncoin (TON) $ 5.08 1.48%