Savills' income demolished after UK's shock Brexit vote

Income set to slow down

Real estate firm Savills has seen its income drop 23 per cent after UK commercial property transactions in the first half of the year fell.

The property giant has warned that it is expecting to see its income slow down further in the wake of the referendum.

Fee income in the UK market dropped from £41.9m in the first half of 2015 to £32.1m in the same period this year. This has been attributed to a “significant reduction” in the number of deals done in the run-up to the UK’s shock vote.

It reported that in central London buyers chose to “remain largely on the sidelines” because of the vote.

“The forthcoming US presidential election, the EU Referendum and political change in the UK together with tightening of fiscal policy and other controls over residential real estate in a number of markets, have all to varying degrees had a negative impact on sentiment, particularly as a result of short-term uncertainty,” the company said this morning.