Post-Brexit UK commercial property market still robust

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The EU referendum vote result created financial uncertainty, but the commercial property market is in a healthy state, say those in the industry.

The rating agency Moody’s, according to a September 2016 article on, has said that there is long-term uncertainty concerning the UK economy, but that the fundamental values of the commercial property market are sound.

Moody’s reports that if there is a period of high employment, then there will continue to be a demand for residential and commercial property.

Ramzi Kattan, a senior analyst at Moody’s, said:

“While political risk will keep market uncertainty high, commercial property sector fundamentals will remain robust in Europe.”

According to a survey for the Royal Institution of Chartered Surveyors, a fifth of property investors are expected to increase their property holdings.

As mentioned in a separate article from the same month, around 41% of British businesses report that they expect to expand the amount of property they use.

Demand for commercial property in most areas is likely to grow, but at different rates. Growth of around 13% is predicted in the South East, compared to London’s at 7% and the South West at 4%.

The survey also looked at employee satisfaction and found that the quality of workplace premises and facilities ranked highly.

Guy Brett of EY Real Estate Advisory commented:

“The commercial property and facilities management industries can draw a degree of reassurance from the expected overall growth in property occupation and in outsourcing by UK corporates.”

With commercial mortgages at low rates, many investors are continuing to find that commercial property is a worthwhile investment.

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