Property funds halt trading as Brexit fallout deepens
Suzanne Lovell
With the knock on from the Brexit vote being felt earlier this week, two more property funds barred investors from withdrawals. So what does this mean to the UK commercial property market?
The recent Guardian article explains more...
"The fallout from the Brexit vote reverberated through the markets on Tuesday as two more City property funds barred investors from withdrawing their cash and the Bank of England warned that risks to the financial system had begun to “crystallise”.
City watchers warned that further property funds would be forced to bar withdrawals as investors race for the door amid fears of a plunge in the values of office blocks and shopping centres in post-Brexit Britain.
The suspensions came on another day of drama on the financial markets, 11 days after the vote to leave the EU wrong-footed investors and sparked political turmoil. Developments included:
• The pound plunging to a new 31-year low against the dollar, falling 2% to $1.30 at one point.
• A closely watched survey of the services sector coming in worse than expected, indicating a sharp slowdown in the wider economy.
• The Bank of England easing regulations on banks to allow them to release up to £150bn worth of loans to households and businesses.
• Chancellor George Osborne held a summit with the heads of the major high street banks, who pledged to avoid a new credit crisis by making loans available."