42% of brokers lack Brexit plan

Brokers claim they are leaving it until it becomes clearer what Brexit will actually look like.

42% of brokers lack Brexit plan

Some 42% of brokers operating in the property and asset finance sectors have not planned for Brexit and are leaving it until it becomes clearer what it will actually look like, research from United Trust Bank has revealed.

The findings of the poll of over 100 finance brokers reflects the high degree of uncertainty still surrounding the effect the UK’s withdrawal from the EU will have on business and the economy.

However, although a majority of brokers are not implementing any Brexit plans just yet, around 1 in 5 (21%) have made plans believing Brexit will bring positive opportunities for their business and 5% are planning for potentially damaging implications. More than a quarter (26%) of brokers who took part in the poll believe that Brexit will not affect their business.

The survey also asked brokers whether Brexit had influenced any significant business decisions and revealed that 44% intended to increase their spend on marketing and promotion and 20% had put a freeze on recruitment.

Harley Kagan (pictured), group managing director – United Trust Bank, said: “Within the next couple of weeks, we’ll know whether the Brexit deal negotiated by the government will proceed or whether it will be back to the drawing board for Mrs May and possibly months or even years of further uncertainty.

"It’s clear from our research that although the countdown clock is ticking, many brokers feel there are at present still too many variables to even begin planning beyond March 2019.

“What is encouraging is that around 1 in 5 brokers see Brexit as an opportunity not a threat and a slightly higher number expect the outcome of Brexit to be benign from a business perspective.

"UTB’s view has always been that whilst it’s prudent to keep a close eye on the implications there are developers, SMEs and entrepreneurs finding and unlocking opportunities across many sectors of UK industry and we remain committed to supporting them.

“When brokers and borrowers can’t find certainty in the economy, they look to their financial partners to provide the stability and experience to ride out any storms. We plan to continue investing in people and technology and to keep growing our book and our business whatever decision is made in Westminster.”