Result has destabilising effect on investment and rental values

Uncertainty following Britain’s decision to quit the EU could have wide-reaching implications for London’s commercial property sector, a major player in the market has warned.

Great Portland Estates said that the outcome of last month’s referendum was likely to have a knock-on effect on investment and rental values in the capital.

Toby Courtauld, chief executive of Great Portland, said: “In the near term, we expect confidence to reduce and some business investment decisions to be deferred whilst negotiations to establish our trading arrangements with the EU are undertaken.

“As a result, we can expect London’s commercial property markets to weaken during this period of uncertainty.”

The company’s warning this month follows news that six separate property funds, worth a combined total of £14billion, have blocked investors from withdrawing their money.

Shaun Port, an online investment expert, said: “We think all of these funds will now [close], probably for the remainder of the year.

“Investors tend to invest on the understanding that they can sell their investment at any time, but the underlying assets – large buildings – are themselves very hard to sell at short notice.”

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