Land securities NAV slips as markets pause for breath during Brexit uncertainty
According to research released by QuotedData, for the year ended 31 March 2017, Land Securities’ NAV slipped as it said that its markets are ‘pausing for breath’.
The chairman says that “In the London office market, we expected the occupational balance to shift from demand to supply during the course of 2017. The Brexit vote brought that inflexion point forward
“Over the next 12 months, we’re unlikely to see rental values grow in London unless we have more certainty on movement of people and the UK’s terms of trade with the EU and the rest of the world.
“In the retail sector, the extent to which higher supply chain costs are passed on to customers remains to be seen. Whatever the outcome, higher costs tend to reduce take up of space.”
The news comes amid signs that the domestic property market is also experiencing a slowdown. Data released today shows that the number of residential property transactions in the UK dropped by 22.5% between March and April, according to HM Revenue and Customs (HMRC). Analysis by the data firm Equifax also suggests that mortgage sales declined by 16% over the same period.
Although the domestic figures look particularly bleak, analysts say that the figures could be slightly skewed by a series of tax changes that have just come into effect.