ECONOMIC growth in Bradford could drop by one per cent this year following the Brexit vote, a new study shows.

Analysis by national law firm Irwin Mitchell and the Centre for Economic & Business Research says Yorkshire’s largest cities are expected to see a significant slowdown in economic growth in the next year following the EU referendum result.

The latest study shows that Bradford’s growth rate based on GVA - the measure of the economic contribution made by each industrial sector - is expected to fall from 1.3 per cent to 0.3 per cent in the year to the first quarter of 2017 and from 1.1 per cent to 0.8 per cent in 2018.

Niall Baker, chief executive at Irwin Mitchell’s business legal services division, said: “These forecasts demonstrate the significant challenges faced by many businesses across Yorkshire.

“All of the cities in the region are expected to see growth rates slow significantly and although there are signs of recovery as we move through 2017 into 2018, output is still anticipated to be lower than it would be if the referendum vote had gone the other way.

“Dealing with this current economic uncertainty presents a tough challenge for many businesses and following Brexit there could well be further instability.

“Although it’s going to take some time to understand the full impact of the referendum result, many organisations are already considering a wide range of legal issues in order to ensure they’re as prepared as they can be for a future when the UK is no longer in the EU.”

Falling confidence and investor demand in Yorkshire’s commercial property market following the Brexit vote has been highlighted by the Royal Institution of Chartered Surveyors has reported . It said both rent and capital value expectations have dropped.

Only 18 per cent of surveyors reported reported a rise in investment enquiries in the second quarter against 33 per cent the previous quarter. Demand dropped across all

sectors, including offices, industrial and retail properties.

The RICS says capital values are also expected to decline modestly over the year ahead .

Demand for all commercial property types also fell with only six per cent of regional surveyors seeing a rise in demand from potential occupiers.

This lack of demand for commercial property is causing weaker rental projections including in Yorkshire where the supply of commercial property remains healthy, especially in the industrial sector.