Moody’s says UK commercial property is robust post-Brexit


Britain’s commercial property market remains robust despite the Brexit decision although a weaker economic outlook may see some prices dip over the next 24 months, ratings agency Moody’s said.

The report published on Monday says that the market experienced some significant uncertainty after June 23 in the medium term. However, it also says that solid fundamental are underlying the sector which will keep it stable, as Reuters reported.

“While political risk will keep market uncertainty high, commercial property sector fundamentals will remain robust in Europe. That said, a weaker macro outlook would take the steam out of the UK commercial property market,” said Ramzi Kattan, Vice President – Senior Analyst at Moody’s.

“While we expect slower economic growth in the UK as a consequence of Brexit, we do not foresee a recession or – perhaps most importantly – a sharp increase in unemployment,” the report said.

If the country manages to keep unemployment below 6%, the growth of employment would remain robust. This would support the demand for both housing and office space with London experiencing a higher level of uncertainty due to the fact that firms might move elsewhere.

However we expect those roles to take many years to migrate and total numbers may be relatively small, given that employment in London has increased by roughly 35,000 a quarter since 2012 despite a somewhat subdued economic recovery.”

“Nonetheless, the weaker macroeconomic outlook may take some of the steam out of UK property markets: in our base case, we see UK prices remaining broadly stable overall, but expect price decreases in particular instances of up to 10 percent depending on property type, quality and location.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Moody’s says UK commercial property is robust post-Brexit


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.