Activity levels in the UK’s commercial property market have slowed considerably following the UK vote to leave the European Union, as businesses grow increasingly nervous about the impact that Brexit may have on the economy, new figures from HM Revenue & Customs (HMRC) show.
The HMRC data reveals that 1.7% fewer commercial properties changed hands last month than in July 2015. This is the first year-on-year drop since April 2013.
A number of high profile commercial property deals have fallen through since the outcome of the EU referendum, but Johnny Dunford, director of corporate real estate at BNP Paribas, is not surprised to see the commercial property market adversely affected by Brexit.
“Some investors and occupiers have taken an unsurprising pause for breath as the new business landscape emerges,” he said.
Despite the slowdown in the commercial property market, the level of transactions in the housing market has remained broadly stable, with HMRC figures showing that 94,550 homes were bought in July, only marginally lower than the 95,430 sold in June.