Despite the volume of transactions in the region totalling £784m in Q2, which was well above the £496m five-year average, it was 18% down on Q1 2016.

Adam Ramshaw, head of LSH Birmingham and East Midlands, said he wasn’t surprised by the slowdown in the run-up to the EU referendum, but felt confidence was returning to the market.

“Birmingham and the West Midlands continue to be an attractive region in which to invest and that is demonstrated by the positive statistics borne out in our analysis, which show that it is still above the five-year quarterly average.

“It’s important to emphasise that it is still business as usual in the West Midlands and we expect investors to continue their interest here.”

Last month, the transport secretary Chris Grayling said that the Midlands needed HS2 in order to connect it to the rest of the country, while last year it was reported that the region was seeing plenty of investment from overseas.

LSH found that the Midlands Engine region was continuing to surge ahead with investment hitting £1.3bn in Q2, 23% higher than last year.

LSH’s report also revealed that the UK commercial property market was expected to fall by a double-digit percentage over the next six months.

Ezra Nahome, CEO of LSH, said it was getting greater clarity about the outlook of the commercial property market and was starting to see investors revert back to more rational behaviour.

“This fall in values, coupled with the devaluation of sterling and the swift appointment of a new prime minister, makes UK commercial property an attractive proposition for overseas investors, and we expect them to be active buyers during the second half of the year.  

“British-based institutional investors are likely to continue to be net sellers for the remainder of 2016.”

Looking at the winners and losers from the current economic situation, Ezra added: “The regions may also outperform London over the short- to medium-term both in terms of investment and development until we have a better understanding of the capital’s future outside of the EU.

“Beyond 2016, much will depend on what the details of a Brexit ultimately look like. UK property is fundamentally in a much stronger position than it was in 2008 and there is much to be confident about in the long term.  

“Investors who can look beyond the immediate uncertainty will be well placed to benefit from what remains an attractive asset class.”