Pre-referendum property dry spell expected

The UK commercial property industry is expecting a dry spell in the four weeks left until the EU referendum next month, real estate experts have said.

Charles Allen, acquisitions director at property company Palmer Capital said: “We don’t expect many transactions to happen from now until June 24, as investors are thinking why take the risk.”

He became the latest real estate guru to warn that a freeze or limit on spending was increasing as would-be-buyers become increasingly spooked by the prospect of a Brexit vote.

Figures by Cushman & Wakefield show that £1.4 billion was spent on London commercial buildings costing over £15 million last month. The figure had shrunk from nearly £2.2 billion in April 2015, however it is still above the 5-year April average of £1.3 billion.

Fergus Keane, a senior director at Cushman & Wakefield said: “I can see deal completion slow a little in June as is to be expected because parties might as well wait for the result.”

However he stressed that overseas buyers will still be attracted to the capital in the event of a vote leave, attracted by favourable currency conditions and a good tax environment.