UNCERTAINTY about Britain''s continued EU membership has led international businesses to postpone property investment in Yorkshire, a new paper by the Royal Institution of Chartered Surveyors has revealed.

The RICS EU Referendum Paper - which examines the pros and cons of the UK remaining and exiting Europe - includes new survey data showing that there has been a steady easing in international demand for Yorkshire's office, industrial and retail property since the referendum was confirmed.

Demand among international investors for commercial property in Yorkshire is now at its lowest level since RICS records began in 2014, with just five per cent of RICS members surveyed reporting increased interest from overseas companies over the last three months - against 36 per cent this time last year.

Uncertainty caused by the EU referendum was cited by 38 per cent of chartered surveyors as the reason why major international retailers and other businesses have been nervous of investing in Britain.

More than 40 per cent of surveyors said leaving the EU would have a negative impact on Yorkshire's commercial property sector with only six per cent saying Brexit would have a positive impact on the commercial property sector.

The RICS paper shows that a range of key industries, from residential housing to construction and rural, have been hit by short term uncertainty. However, in the longer term, RICS members are still predicting steady growth across the rural, land and built environment sectors.

Simon Rubinsohn, RICS chief economist, said: “There is no doubt that since the EU referendum became a certainty, we have seen a decline in interest from overseas investors in UK commercial property. At least in the short-term, we know that international retailers and service providers are finding the UK market less attractive.

Meanwhile, Chancellor George Osborne reiterated his claim that Brexit would hit Britain's economic growth after figures showed that the UK economy slowed in the first quarter of this year following a slump in the manufacturing and construction industries.

The Office for National Statistics said gross domestic product grew by 0.4 per cent in the first three months of 2016, against 0.6 per cent in the fourth quarter of last year.

Mr Osborne said: "It's good news that Britain continues to grow, but there are warnings that the threat of leaving the EU is weighing on our economy. Investments and building are being delayed, and another group of international experts, the OECD, confirms British families would be worse off if we leave the EU."