BREXIT: What are the Legal Implications?

On 23rd June 2016 the UK voted to exit the European Union. In this post we round-up the legal implications with respect to property, planning and dispute resolution.

Property

There are no immediate legal implications.

However, there has already been a significant impact to the commercial property market due to the volatile financial and economic conditions triggered by the decision to leave the EU.

This is likely to extend into the residential market and continue for some time to come, if the current level of uncertainty continues.

Going forward, there may be changes, or the repeal of some legislation that derives from EU legislations, such as EPCs (energy performance certificates), MEES (minimum energy efficiency standards) and Green Leases, as well as various regulations applicable to residential tenancies.

Planning

There are no immediate legal implications.

The main influence of EU law on planning in the UK is in relation to the requirements for the environmental assessment of development projects and policies.

Dispute Resolution

As an EU member state, the UK is a party to a framework of EU legislation which sets out the rules that courts in EU member states will apply to determine the governing law of a contract and of tort claims and their jurisdiction over disputes.

This framework also provides the procedure for serving legal proceedings as between member states and the mechanism for enforcing a judgment from a court in one member state in other member states. This area is therefore likely to be directly affected by Brexit.

The UK government’s future partnership paper on cross-border civil judicial co-operation has clarified the post-Brexit situation to some extent, and Article 50 negotiations are addressing the issue in the more limited context of the UK’s withdrawal from the EU.

Credit: Thomson Reuters

Written by James Naylor

Partner, CG Naylor LLP.

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