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Brexit fears hit investment into UK property, experts warn

International investment into UK commercial property has stalled as widespread market uncertainty ahead of the Brexit vote takes hold, new research has warned, with more than a third of those surveyed blaming the referendum.

Research by the Royal Institution of Chartered Surveyors (Rics) found that demand has fallen, particularly in central London, since the fact a European Union referendum would be called was confirmed following last year’s general election result, showing the threat of the vote has affected wider confidence in the UK market.

Just 5pc of the Rics members surveyed said they had seen increased interest from overseas companies looking to invest in the UK during the last three months, a drop from 36pc in the second quarter of 2015.

More than a third of those surveyed said the referendum was the major reason why investors were steering clear of Britain.

Only 6pc of the people the Rics surveyed said leaving the EU would have a positive impact on the commercial property sector.

Should Britain leave the EU, 43pc of respondents felt that it would have a negative impact on the commercial property sector.

The remainder said there would be no change, or that they did not know what the impact would be.

The Rics paper suggested that in the event of the UK voting to leave the EU, investment into the country would remain at low levels far beyond the expected two-year negotiation period immediately after the vote.