The Bank of England has released £150 billion to banks and households following the relaxation of regulatory requirements on banks.

Following the publication of the Bank of England’s Financial Stability Report, the Bank’s governor, Mark Carney (pictured), said: “The UK has entered a period of uncertainty and significant economic adjustment.

“The efforts of the Bank of England will not be able to fully and immediately offset the market and economic volatility that can be expected while this adjustment proceeds.”

He said the Financial Policy Committee was watching the buy-to-let sector carefully, while following the commercial property market slowdown closely.

Alistair Jeffery, executive chairman, Bluestone Group, said: “The result of the EU referendum has heralded a period of increased volatility and uncertainty, as companies consider the potential impact of the outcome on their businesses. The slowdown in new issuance in the capital markets looks set to continue for several months, whilst the picture clears and issuers and investors adjust to the new world order. Credit spreads have widened somewhat, but in contrast to the financial crisis of 2008, there are no signs of any liquidity related stress or related increase in borrowing costs at this stage.

“For traditional mortgage lenders, a slowdown in volumes looks inevitable as purchase decisions are delayed and buy-to-let investors take profits or de-lever. House price growth is likely to moderate, particularly in London and the South East, reflecting the markedly lower consumer sentiment, weaker levels of inward investment, and potentially the first signs of voluntary repatriation of EU nationals.

“The listed specialist lenders have been hit harder by the negative sentiment than their mainstream peers, as growth and margin pricing premiums are unwound. In the medium term however, the sector is likely to benefit from criteria tightening amongst the major banks and building societies, displacing more applicants from traditional sources of finance. Product niches such as non-resident borrowers and consumer buy to let (mortgages allowing non-professional landlords to borrow against a second property) are likely to develop.”