Second Brexit referendum most likely path says First Property CEO

Ben Habib CEO of First Property Group, a UK-headquartered fund management company, believes that a second Brexit referendum is on the cards, after Theresa May had her Brexit deal defeated in the House of Commons on Tuesday.

In the coming weeks, when the UK government accepts that no consensus for any form of deal can be reached in parliament that will also be accepted by Brussels is impossible, a second Brexit referendum is the most likely step to take, Habib said in an interview with IG TV.

What is the best outcome for Britain?

Habib admitted that he is ‘sanguine’ about a no deal Brexit, with such a s scenario providing nothing in terms of adversity for First Property Group.

‘The markets may wobble, sterling is likely to fall in the short-term which will mean our polish assets will go up in value,’ he said. ‘But I suspect that the sterling weakness will be short-lived and any weakness in the UK property market will be also short-lived and we will bounce back in six months.’

‘In the medium to long-term a no deal exit will make no difference to the UK or our business,’ he added.

‘Markets are overconfident’ about Brexit outcome

Sterling rose 0.05% against the dollar to $1.287 after May’s Brexit deal was defeated in monumental fashion as investors bet on Britain avoiding a no deal Brexit – hitting its highest level since November

The pound fell as much as 7% over the course of 2018 in response to a lack of clarity on the exact terms with which the UK will leave the EU.

Investors seem reassured that no Brexit and a second referendum appear more favourable among British MPs than the UK leaving without a deal.

‘I was surprised by the pounds movement yesterday,’ Habib said. ‘It is very odd that a country’s currency should strengthen after its government is heavily defeated in parliament. It says a bit about what the markets thought of [May’s] deal.’

‘I would’ve thought that Sterling should be under pressure but it has been incredibly robust and I think that the indication from that is that the market reckons we will remain in the EU in some form or have a soft Brexit,’ he added. I suspect that the markets are overconfidence.’