New survey data shows slowdown since EU referedum was announced
International businesses are postponing investment in Britain in the wake of EU uncertainty, new research by the RICS has revealed.
New survey data produced by the RICS shows that international demand for UK office, industrial and retail property has fallen since the referendum was confirmed last summer.
Demand among international investors for UK commercial property is now at its lowest level since RICS records began in 2014, with just 5% of surveyors reporting increased interest from overseas companies over the last three months. In the second quarter of 2015 this figure stood at 36%.
Nearly four in ten surveyors cited uncertainty caused by the EU referendum as the reason why major international retailers and other businesses were nervous about investing in Britain.
Should Britain leave the EU, 43% of respondents felt it would have a negative impact on the commercial property sector. Only 6% said it would have a positive impact.
The RICS has published an EU Referendum Paper highlighting the pros and cons of the UK remaining or exiting the EU.
Simon Rubinsohn, RICS chief economist, said: “There is no doubt that since the EU referendumm 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 what international retailers and service providers are finding the UK market less attractive.”