UK commercial property robust in wake of Brexit vote

LONDON Britain's commercial property marketplace remains robust inside the wake of a vote to go away your European Union, although a weaker economic outlook could see a quantity of rates dip over the particular subsequent a pair of years, ratings agency Moody's said.

The June 23 vote had developed significant uncertainty concerning the marketplace inside the medium term, it mentioned inside a record on Monday, although your agency's base case view is always that the particular fundamentals underpinning your sector are solid.

"While political risk can keep market uncertainty high, commercial property sector fundamentals will remain robust inside Europe. In Which said, any weaker macro outlook would go ahead and also take steam out in the UK commercial property market," mentioned Ramzi Kattan, Vice President - Senior Analyst in Moody's.

"While we expect slower economic growth inside the UK like a consequence associated with Brexit, we do not foresee the recession or - possibly most importantly - a clear, crisp boost in unemployment," the actual record said.

If unemployment remained below six percent, employment growth would remain robust, it said, supporting interest in both housing along with office space, although London commercial costs could probably be hit if firms move actions to end up being able to elsewhere in the region.

"However we expect individuals roles to consider many many years in order to migrate and also total figures for sale might end up being relatively small, considering that employment in London has grown by roughly 35,000 a quarter since 2012 despite any somewhat subdued economic recovery.

"Nonetheless, your weaker macroeconomic outlook may take some of the steam out of UK property markets: inside our base case, we see UK costs remaining broadly stable overall, however expect price decreases specifically instances involving up to 10 % depending on property type, quality as well as location."

(Reporting through Simon Jessop; editing simply by Rachel Armstrong)