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
TAKE-UP OF WAREHOUSE SPACE SURGES TOWARDS END OF 2019
According to Savills, a wide range of occupiers are causing a surge in demand for industrial warehouse space (units of 100,000 sq. ft. plus), with take-up due to hit a total of 33 million sq. ft. by the end of this year. In particular, take-up by third-party logistics (3PL) providers has hit a record high, climbing to 8.3 million sq. ft. by Q3.
Q3 BOUNCE BACK FOR SCOTTISH COMMERCIAL PROPERTY
Commercial property in Scotland enjoyed a strong Q3, with a total of £1.2 billion transacted between July and September 2019, according to the Scottish Property Federation. This was nearly double the total sales value transacted in Q2 and was mostly driven by significant growth in Edinburgh. In fact, the total va lue of commercial property sales in the capital more than tripled to £462 million.
CROWN ESTATE ADDS TO PORTFOLIO IN CENTRAL LONDON
The Crown Estate, which manages the Queen’s extensive land and property holdings, has purchased the lease interest of 130 Jermyn Street in the St James’s district of central London for £70 million.
WEAKER POUND LEADS TO LONDON HOTEL BOOM
Investors took advantage of the weaker pound, a result of the political turmoil caused by Brexit, to make moves in the UK hotels market. Over 200 hotels have either received planning permission or are in construction across the capital, with nearly a quarter (48) of these located in Westminster.
MORTGAGE ACTIVITY
- Gross mortgage lending across the residential market in October 2019 was £25.5 billion
- 0.9% lower than in the same month in 2018
- Mortgage approvals for home purchase by the main high street banks were 3% higher than in October 2018
HOUSE PRICES HEADLINE STATISTICS
- UK house prices grew by 0.7% in the year to October 2019, down from 1.3% in September 2019
- House price growth was strongest in Northern Ireland where prices increased by 4.0% over the year to Quarter 3 (July to September) 2019
- The lowest annual growth was in London, where prices fell by 1.6% over the year to October 2019