International property investors are staying away until the Brexit vote is done and dusted, a RICS EU Referendum Paper has indicated.
Uncertainty caused by the referendum on 23 June is the reason major international retailers and other businesses are nervous about investing in Britain according to 38% of RICS members.
What is more if the UK leaves the EU 43% of RICS members felt it would have a negative impact on the commercial property sector and just 6% thought it would have a positive impact.
Simon Rubinsohn, RICS chief economist, said: “There is no doubt that since the EU referendum became a certainty following the general election last May, we have seen a decline in interest from overseas investors in UK commercial property.
“At least in the short-term, we know that international retailers and service providers are finding the UK market less attractive.
“But we need not view this as a negative. As a result of the market dampening, business rents are also rising at much slower rates, which suggests that we might soon be seeing more favourable conditions for entry and business growth.
“Moreover, it is interesting to see that despite the climate of uncertainty across all sectors surrounding the impact of Brexit, the long-term view is that we will continue to see the value of land and property assets increase, albeit at a marginally slower rate.”