UK - Commercial Property News January 2020 Compiled by Hayven Property Tax

Commercial property is always a very newsworthy topic. Here is a roundup of the latest news (January 2020).

Real estate outlook 2020: The year UK real estate rebounds?

With a new Conservative government enjoying a majority in parliament and the passing of Brexit withdrawal bill, all eyes are on what will happen to the UK real estate market in 2020, reports “IPE Real Assets”

Expectations are for a departure from the EU at the end of January. Will this finally spring the country’s commercial property back to life?

According to Will Matthews at Knight Frank, business is always looking for certainty and the conservative majority in the general election will create a more certain environment, with the UK more likely to leave the EU early next year.

“We might then witness a flurry of activity at the start of the year, as there is a great deal of pent up demand for commercial real estate that just needs a bit of certainty to be realised, Matthews who heads the head of UK commercial research says.

This is contingent on the right assets being available, and investors seeing the value in them. It will also rest on investors being willing to sell – ultimately a ‘Catch 22’ scenario, he says.

Matthews adds that investors might be reluctant to sell as there is nowhere to put their money in the aftermath, and subsequently there may be fewer assets up for sale.

“We’re yet to see the anticipated large scale relocation of major companies to other parts of Europe materialise.”

US private equity funds are the currently the largest source of capital, though not all of them are squarely focused on the UK, Matthews says.

“The main trend we’re seeing now is the sheer diversity of sources, with investors more willing to go for different asset classes, whereas in the past some asset classes were more institutional in nature.

“The Middle East is likely to be a short-term source, whilst China’s renewed government policy will set it up for growth in the longer term. Similarly, Japan is gearing up for a great deal of investment activity in 2020.

Matthews believes London will be the next big opportunity. The “market peaked in 2015” and has been in a holding pattern ever since he says.

“There are already signs of investor confidence in the city; more than 300,000 jobs have been created over the past four to five years, and we estimate a total of £55bn (€65m) is waiting in the wings as unspent financial firepower.

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Why experts are predicting confidence to return to the commercial property market in 2020

Confidence is expected to return to the commercial property market this year following a decisive election result as developers and investors “crack on” with projects they were previously hesitant about, reports “The Yorkshire Evening Post”.

Despite ongoing Brexit talks, Yorkshire property experts expect a productive year in both the office and investment markets as businesses press ahead with expansion or relocation plans.

Eamon Fox, partner and head of office agency at the Leeds office of property agent Knight Frank, predicts top office rents will reach £34 per sq ft in the city by the end of the year from a current headline figure of £30 per sq ft.

Read our full article here; www.hayvenpropertytax.co.uk/commercial-property-news-january-2020/