Many economists prior to Brexit and the referendum predicted an immediate and significant impact on the UK economy should Brexit really happen and the country votes to leave the EU, so far these predictions have not come to pass.
In July 2016, the UK services sector grew 0.4%; a stronger increase than expected in the wake of the Brexit vote, this shows that consumer confidence was not affected and consumers carried on spending as normal. The Office for National Statistics (ONS) also reported economic growth accelerated faster than expected in the run-up to the referendum. Gross Domestic Product (GDP) grew by 0.7% in the three months to the end of June, an increase of 0.6% from the estimate.
The OECD, and international body, has revised its GDP growth forecast to a more favourable 1.8% (up from 1.7%) despite their initial warning that the UK would suffer immediately, post- Brexit. However, due to the uncertainty about the future and indeed policy implementation, the OECD has reduced the 2017 forecast to 1% (from 2%) stating that the economic risks remain high.
There has been a decline in confidence within the small business sector. The Federation of Small Businesses (FSB) conducted a post-Brexit survey which showed more small and medium-sized businesses were pessimistic, rather than optimistic, about the future for the first time in over four years.
Despite the immediate aftermath of the Brexit vote being much less detrimental than originally projected, the uncertainty surrounding the exit plan (or lack of) is impacting UK businesses.
The Serviced Office industry, which offers flexible work space, minimal commitment, and short term contracts, is likely to prosper during the difficult times ahead. Initially there has been a reduction in both enquiries and sales across the industry, due to negative sentiment. Businesses want to know how things will pan out over the coming years, but with the hysteria dying down businesses are beginning to take advantage of the opportunities made available by the Brexit vote.
The flexible space offered by DBS Managed Offices is a huge benefit for companies looking to cut their lease terms. Rather than being legally obliged to pay for work space for a contract period of 3-5yrs, serviced office clients have contracts of 3-12 months. They also do not have to predict growth; if business increase, the flexibility of DBS offices allows businesses to upsize their work space, or indeed if the opposite should happen, reduce their work space. There are also no concerns about fluctuations in energy prices, telecoms, internet and business rates, with these all being included in the monthly rental.
The global concept of working environments has also changed dramatically in recent years; with the assistance and development of new technology, more businesses are choosing flexible and business community based workspaces to operate from.
We can offer a free price comparison analysis of the serviced office industry Vs. the leased office industry – for more information simply email email@example.com with your office size, number of employees and current monthly rental. There’s no obligation, so why not give it a go and see how you could save money.