Although the residential market has shown some resilience, in the commercial sphere a more guarded approach has been adopted.

According to figures published by the Royal Institute of Chartered Surveyors (RICS) inquiries from new buyers fell in June, with 36% more surveyors nationally reporting a fall in interest – the lowest reading since mid-2008. Sales also dropped for the third successive month.

As a result of the referendum result, some mortgage brokers and estate agents noted that a small proportion of buyers were pulling out of transactions due to concerns over negative equity with commentators also predicting a house price readjustment. 

Recent figures by Rightmove, however, suggest that the average asking prices for homes has remained steady. 

In response, a base rate cut by the Bank of England had been expected in July to tackle what The Guardian called the “Brexit crisis”; in the event the Bank decided to keep to the current rate of 0.5%.

As shares in housebuilders and banks were falling amidst this “crisis”, the Bank’s governor Mark Carney commented that “some monetary policy easing will likely be required over the summer”. This remark, of course, came after the Bank had already relaxed banking sector rules to free up lending to households and businesses.

The Bank is currently monitoring a number of sectors, including the buy-to-let lending and commercial property market.

The latter has seen a number of major funds take steps to stop nervous investors from withdrawing their investments. Reports in The Times suggest that up to £5bn worth of property assets would need to be sold to satisfy the potential flood of redemption requests by investors.

Property funds worth £18bn stopped trading after Brexit. These included Standard Life, Aviva and M&G, the majority doing so for 28 days.

Aberdeen Asset Management, meanwhile, which initially only suspended its fund for one day, has also now extended the suspension of its circa £3bn property fund by over a week. The company had already cut the value of its fund by 3.75% in late June. 

One senior analyst predicted that these funds were likely to “remain on ice” until asset managers were able to sell properties in order to meet their redemption responsibilities.

Investor concerns about the long-term forecast for property are understandable and there is certainly less of an appetite to make any large purchases. Perhaps the most prominent example of this is AXA Real Estate temporarily suspending its plans for a 62-storey tower in the City; a development previously expected to become the capital’s tallest tower. 

While it is true that the drop in the value of the pound has made the domestic property market more attractive to foreign investors, the current nervousness surrounding asset values is likely to continue at least for the short term. It is also likely that transaction volumes will be affected. 

In a post-Brexit market, title insurance can play a vital role in appeasing these concerns. Wherever warranties are required but not obtained on portfolio sales, tailored title insurance can provide a purchaser and their lender with reassurance. Similarly, any foreign investors holding off on buying in the UK will be comforted by the absolute guarantee insurance provides.

Titlesolv is the trading name of London & European Title Insurance Services Ltd authorised and regulated by the Financial Conduct Authority.