The Singaporean bank, which lends into the London property market, has halted this programme while it waits for market conditions to calm down following the Brexit vote.

Singapore-headquartered UOB has suspended loans to the London property market in the wake of the UK’s vote last week to leave the European Union, highlighting how uncertainties over future trade links are rattling lenders.

The bank has said the decision was caused by uncertainty about market conditions following last Thursday’s momentous vote, which has caused political uproar, sent sterling sliding, and hit equity markets.

WealthBriefingAsia and sister publications have also contacted a number of other Asia-headquartered lenders, such as OCBC, DBS, China’s ICBC and Macquarie, about what their strategy for London is following the Brexit vote. Macquarie declined to comment; ICBC and DBS declined to comment also. OCBC had not responded to emails at the time of going to press.

The Brexit vote also raises a broader question over to what extent foreign banks will change how they use London as a booking centre if there are concerns that the UK will be frozen out of the EU’s Single Market. (For a round-up of comments from banks, see here). 

“We will temporarily stop receiving foreign property loan applications for London properties. As the aftermath of the UK referendum is still unfolding and given the uncertainties, we need to ensure our customers are cautious with their London property investments. We are monitoring the market environment closely and will assess regularly to determine when we will re-instate our London property loan offering,” the bank said in a statement yesterday. This publication understands this loan suspension applies only to residential property loans for retail customers in London, and not to other areas of the UK.

Investors from the Asia-Pacific region, along with those from regions such as Russia/CIS and the Middle East, have been prominent investors in the London property market in recent years. 

“The outcome of the UK’s referendum over the weekend has resulted in uncertainty across most markets and while money markets have immediately reacted, this was widely expected and predicted to happen,” said a Singapore-based senior executive at Select Property Group, a provider of property investments.

The firm cautioned against undue pessimism. "More importantly, this reaction is not underpinned by seismic economic changes – 'Brexit' is currently only a decision, and any changes will take place gradually over a number of years. That said, today the pound is significantly cheaper for Singapore investors, in part a result of the referendum outcome, providing a good opportunity to purchase assets priced in pounds,” said Elliot Vure, sales manager – Asia at Select, who heads the group’s Singapore operations.