Blog

woman at computer checking stock market

What Is The Best Area to Invest In In Post-Brexit Britain?

If you’ve had a longstanding interest in investment, then you’ll be familiar with the notion that there’s always opportunity to be found in a crisis.

With the shadow of a no-deal Brexit looming, talk of stockpiling food and mobilising troops, it’s no wonder the public is nervous and that many investors are starting to turn away from Britain to place their money elsewhere. When investors leave, however, share prices drop, and when businesses have to look for new suppliers, some home-grown industries inevitably benefit. If you’d like to keep investing in Britain, then how can you best take advantage of this?

Filling the gaps

As many share tip articles have noted, the first thing to do is consider those sectors that are traditionally dependent on supplies from the continent. With imported goods – especially those from EU countries – likely to increase in price, those British businesses that can fill the gaps to some extent will have the opportunity to grow and do more. As North Sea gas is running out and importing gas could become very expensive, it’s a good time to invest in renewable energy projects, which have the additional advantage of already-increasing public demand. Because processed dairy products such as butter, cheese and yoghurt mostly come from the EU, small-scale cheesemakers are a good choice. Once such companies have expanded their market share and become well known, they are unlikely to lose much, even if Britain rejoins the EU at some point in the future.

What to avoid

For the last decade, the British construction sector has been strong, and there’s a traditional approach to investing that says that infrastructure and agriculture are always a safe bet because people will always need them. In this particular situation, however, they should be looked at with caution, because both sectors rely heavily on migrant labour. The end to freedom of movement between Britain and EU countries, with no visa schemes suitable for meeting the needs of these sectors yet on the table, means that both risk heavy losses. Because farmers will be losing EU subsidies (though these may be drawn out some way beyond March 2019), there is a serious risk that many smaller agricultural businesses will go under. Construction is also likely to suffer due to the increased cost of materials that are currently heavily sourced from EU countries.

Safe as houses

If there’s one other thing that people always need, it’s shelter, and the very fact that the construction industry is likely to struggle means that the value of existing real estate is unlikely to fall for long. Buying up real estate while it’s cheap could put you in a very strong position in ten to 15 years’ time. What’s more, if wider economic pressures lead, as expected, to fewer people feeling able to buy their own homes, and to more losing their homes, then there will be an increase in demand for rental properties and a positive market for landlords.

Brexit has the potential to completely restructure the investment landscape in Britain – and that’s an opportunity that female investors have been waiting for.

Leave a comment

Your email address will not be published. Required fields are marked *