After conducting some new research, the independent UK real estate advisor Investment Property Forum (IPF) has found that across this fair isle of ours, sentiment towards commercial property has seen a significant boost in the three months to August. The latest UK Consensus Forecasts, which is a study driven by more than 20 leading fund advisors and managers, found that the returns from city offices are expected to reach 19.9% this year, which is a 3.5% increase since the last reading, back in May.
West End returns are projected to achieve 18.8%, while the forecast on nationwide returns were forecast to come in at 17.9%. Industrial properties are expected to yield 15.4%, with standard retail at 12.1%.
Until July, annual retail sales had risen by 4.2%, however IPF noted that retail property had continued to underperform the broader market. There seems to be a Brightside though, as there are sign that sentiment in the sector is improving.
IPF director, Pam Craddock stated that, “There has been a marked uplift in sentiment, particularly towards London offices, in recent months, which underlines the strong fundamentals of UK real estate.”
“Respondents predict that Britain’s underlining recovery could further bolster retail property, which has so far lagged behind other sectors. With wages now rising, consumer spending increasing and recovery spreading out, retail property is the only sector predicted to show increased rental growth next year.”
A study conducted by Nottingham Building Society has found that 19% of UK landlords are planning to invest in more properties.
In a significant turn, 70% of mortgage brokers believe the new pensions enacted this April will fuel demand for more buy-to-let mortgages. The forecast from the brokers themselves (26% of them anyway) is that demand for mortgages will rise dramatically over the next 12 months; 41% did predict a slight increase and for more good news, only 2% predicted a decline.
“The nation’s love affair with property is as strong as ever and this is reflected in the growing demand for buy-to-let properties,” Ian Gibbons, Nottingham Mortgage Services Senior Mortgage Broking Manager, said.
As a top provider in commercial property in London, this is great news!
So if you’re looking to take advantage of this rise in commercial property investment, why not get in touch with us here at Prideview. We specialise in commercial property, and can provide a wide range of investment opportunities to suit your needs perfectly. For more information, please don’t hesitate to contact our friendly team today by giving us a call on 0208 863 8680, to find out more about what we can do for you.