The UK property market will weather the impact of Brexit, according to La Franaise.

The company’s director of real estate market research, Cécile Blanchard, said UK market fundamentals were “sufficiently sound” to soften the blow.

An adjustment in values – rather than a collapse, as happened during the global financial crisis – is more likely, Blanchard said.

“We would expect there to be a flight to quality, with a focus on core investments, which can weather the effects of any post-Brexit fallout in the occupier markets,” she said. 

“London will remain one of the most sought after destinations by global investors on account of language, transparency and ease of doing business.”

With continuing strong, global capital flows, the fall in sterling is likely to encourage new investment activity once pricing has settled, she said.

“This is likely to be led by Asian and Middle Eastern investors, many of whom will still see London as a natural gateway to Europe,” she added.

“First-time investors will be encouraged by sterling depreciation and a more restrained bidding environment, creating opportunities to cut deals quietly off-market.”

Capital values in the UK market are expected to fall but with a “very uneven gradient”.

Prime assets, well-let on long-term leases, will be least affected due to strong appetite from global capital sources for defensive investments. 

Investment market volumes in the direct market were “subdued” in the run-up to the referendum, Blanchard said.

“Although there are many transactions under offer, it is too early to spot trends in pricing,” she said.