Headline office rents are holding firm across the UK in the wake of the leave vote, according to the latest quarterly report by Lambert Smith Hampton.

Rental levels are being supported by an ongoing shortage of good quality stock across many markets, with the impact of the vote expected to be largely reflected through a softening in rent-free incentives.

15 UK markets have recorded an increase in headline rents during the first half of 2016, with notable rises seen in some markets such as Hemel Hempstead (+25%) and Watford (+20%). Mayfair was the only UK market to see a fall in prime headline rents in H1 2016, falling to £120 sq ft from the recent high watermark of £125 sq ft.

Meanwhile, UK-wide occupier transactions were also resilient in Q2, with overall take-up only 8% below the ten-year quarterly average and the total for H1 2016 in line with the half-year average.

Tony Fisher, national head of office agency for Lambert Smith Hampton, said: “Despite uncertainty, deals, interest and headline rents have remained healthy outside of London so far, however, if sentiment continues to be hit, headline rental growth that would otherwise have occurred will be dampened, with the risk of incentives increasing.”