UK Brexit hits market

Real estate advisory firm Savills experienced a 23pc drop in its income from UK commercial property transactions in the first half of the year, and warned that it was expecting a further slowdown globally as market uncertainty continues.

Savills UK Brexit hits market

The company said fee income in the UK market dropped from £41.9m in the first half of 2015 to £32.1m in the same period this year, primarily as a result of a "significant reduction" in the number of deals done in the run-up to the European Union referendum.It reported that in central London, many previously significant buyers, such as sovereign wealth funds and private equity, chose to "remain largely on the sidelines" because of the vote, although that meant buyers with private wealth, particularly from the Middle East, had been more active.

Overall, investment trading volumes for the UK market were down 34pc, Savills said.Pre-tax profit at the firm dipped 3pc in the six months to June 30, from £26.4m at the same point last year to £25.5m, as the business was hit by wider uncertainty caused by macroeconomic and political factors.

“The forthcoming US presidential election, the EU Referendum and political change in the UK together with tightening of fiscal policy and other controls over residential real estate in a number of markets, have all to varying degrees had a negative impact on sentiment, particularly as a result of short-term uncertainty,” the company said this morning.

“In key cities, such as London, Frankfurt, Hong Kong, Shanghai and New York, supply remains constrained and occupier demand relatively resilient,” Savills added.