With the Scottish Referendum, the Brexit vote, two General Elections, a vote of no confidence, the Prime Minister resigning, we have all worked with this new norm of heightened uncertainty in the air for over three years.
The short term promises a spending review, the prorogation of Parliament, a Brexit deadline and potentially another General Election.
Regardless of any grand statement from Westminster, Brussels or Dublin any new trading status will take several years to establish itself, but based on the last three years our market will continue to trade briskly in the long term asset that is real estate.
For supply to meet the proven demand, sellers will need motivation or clear conviction to price assets appropriately in the market. Our £300m of sales since February provides the data and pool of buyers to interpret the vagaries of demand and assist with pricing as the market becomes ever more selective.
The Funds have been motivated to raise cash, liquidating smaller assets for some time, and this will continue if the pressure continues and their valuers can meet the price expectations of our cash rich but very well informed market – this evolves on a monthly basis.
The falling High Street will continue to provide challenges, from which will come opportunity as more higher yielding stock comes forward.
This uncertainty will continue to fuel the appeal of alternatives and added value opportunities which allow investors to spread their risk.
Where debt is available, it remains one of the few certainties. It looks set to remain at its lowest rate for a decade and the yield gap remains as compelling as ever.
Against this back drop, we see the average retail yield perhaps softening as more secondary stock is traded. The rarer long let, mixed use and alternative assets will continue to be highly sought after, with yields potentially tightening further in the face of clear demand.
In these uncertain times, our combined experience of over 250 years will, we hope offer some clarity as the market continues to evolve.
We would like to thank our clients for your support this year and look forward to speaking to you all in September as we prepare the October 23rd catalogue.
“The falling High Street will continue to provide challenges, from which will come opportunity as more higher yielding stock comes forward”