A report released last week by property consultants Lambert Smith Hampton (LSH) showed that investment fell significantly towards the end of the first quarter, with total sales down 27% on the previous quarter to £11.7bn.

Ezra Nahome, CEO of Lambert Smith Hampton said: “The market enjoyed a bright January, buoyed by strong momentum from the end of last year, but, predictably, volumes have tailed off since then.

“It’s no surprise that investors have taken a step back in the face of growing uncertainty over the outcome of June’s EU referendum.

“We saw it in 2014 ahead of the vote on Scottish independence and we’re experiencing it again now – investors do not like uncertainty.”

The figures showed that UK-based institutional investors purchased £2.9bn of commercial real estate in Q1 this year, the lowest quarterly total for almost three years.

Investment in the capital also fell by 15% on the five-year average, which LSH attributed to a decrease in purchases by overseas buyers.

Q1 2016 saw only £2.2bn invested in Central London offices, less than half of the £4.6bn volume in Q4 2015.

“The next couple of months are likely to remain quieter and I expect to see a reduction in investment volumes in the second quarter of year,” Ezra added.

However, despite the drop, LSH remained optimistic.

Ezra said: “This creates opportunities for those who know where to look, and investors who can mitigate the uncertainty with strong insight are in a strong position to benefit.

“Brexit concerns aside, the market remains in a fundamentally strong position and we don’t see any reason why activity won’t bounce back if the country elects to remain part of the EU on 23rd June.”