Our monthly property market review is intended to provide background to recent developments in the property markets as well as to give an indication of how some key issues could impact in the future.
Overview
MARKET BEHAVIOUR “LITTLE CHANGED” AS BREXIT HEADWINDS REMAIN
The UK Commercial Property Market Survey for Q2, conducted by the Royal Institution of Chartered Surveyors, reports that demand is still solid across the industrial sector and that further growth in capital values is expected across both the prime industrial and office sectors over the coming year.
INVESTORS PURSUING CORE ASSETS IN THE CITY OF LONDON
The recently released Savills City Investment Watch, reported that £1.017bn was transacted across nine deals in the Square Mile during July. This represents the second highest monthly turnover this year, taking overall investment for 2019 to just over £4bn. Despite this increase in transactions, volumes are lower, with the total number of deals this year so far totalling 59, over a third (35%) down on the five-year average of 91 deals. Investment volumes have been impacted by a lack of core £100m+ transactions.
EDINBURGH OFFICE INVESTMENT SURGES
According to Knight Frank, investment in Edinburgh offices during the first half of 2019 has outstripped 2018’s annual total, driven by some key deals in Q2. Nearly £310m was invested in the city’s offices in H1, beating 2018’s total of £284m.
MORTGAGE ACTIVITY
- Gross mortgage lending across the residential market in June 2019 was £21.9 billion
- This figure is 4% lower than the figure in June 2018
HOUSE PRICES HEADLINE STATISTICS
- UK house prices grew by 0.9% in the year to June 2019
- House price growth was strongest in Wales where prices increased by 4.4% in the year to June
- The lowest annual growth was in London, where prices fell by 2.7% over the year to June