Here are six property market implications:

1. Occupier demand will weaken in line with economic growth and declining business sentiment. The impact on rents may be limited by tight supply, but activity will be adversely hit.

2. Investor sentiment will deteriorate, further subduing capital flows in the short to medium term.

3. There is likely to be a negative capital value adjustment over next two years (estimated at up to -10 per cent with yields moving around 50bp). London sectors remain most vulnerable to correction given current keen pricing and their multinational occupier base.

4. The residential market is expected to cool despite lower interest rates, but any correction will be mild, except in London where values are higher, making the market more exposed.

5. For property markets, the initial correction will be most severe but this will be followed by an upturn as opportunities re-emerge in UK core markets and the benefits of a weaker sterling are recognised. Sentiment and relative pricing will be key to shore up demand.

6. Much will depend on the speed of negotiation, the wider political picture and whether a clear and favourable direction of travel is established early on.

For more on Brexit see below links:

Brexit: the impact on the Japanese economy ​

Brexit: APAC’s winners and losers in real estate​

Opportunity knocks twice for investors in Malaysia​