UK Property Market back to its old self as it enters 2015
by Cathal Leonard
The UK property market has returned to pre-crisis levels and yields are now comparable to heights not seen since the early 90’s, a new report from Deloitte has stated.
With 2014 considered an ‘outstanding’ year for the UK property market, some degree of moderation is expected to take place in 2015. However, with the rental market predicted to perform well for yet another year, strong returns should be a feature of 2015 despite a slight slowing in overall activity.
While it is difficult at this stage to quantify the consequences of the Swiss franc crises upon the property market, resultant fluctuations of property prices and demand could be limited to London’s prime properties, that being said, demand for UK property from wealthy foreign investors is expected to account for over 20% of all activity in 2015 according to Deloitte
The rising cost and in particular, the limited development of new property stock is an area of concern for the UK market in 2015, the Deloitte report emphasise the need for innovative cost cutting measures to be employed by construction companies in order for new-build prices to remain competitive.
Changes in consumer behaviour with regard to convenience shopping also feature in the report, and are considered as the main reasoning for a very competitive outlook in the retail space sector of property investment across the UK, particularly in cities and large towns.“With consumers increasingly making small, frequent shopping trips, the demand for convenience space is set to accelerate and intensify during 2015. Locations that form part of people’s daily transport routes such as local high streets, stations, or other major transport hubs will be key.”
When keywords such as volatility, instability and uncertainty become the norm when describing the outlook for market activity across the continent and beyond, it is difficult to predict what 2015 will bring in terms of investor sentiment be it in property, shares or currency trading. However, with 2014 being a stellar year for UK property, the maritime phrase “steady as she goes” springs to mind as a desirable adage for 2015.
http://invezz.com/news/real-estate/15777-UK-Property-Market-back-to-its-old-successful-self-as-it-enters-2015
