Residential Investment Market

There has been a notable change in the air over recent months. Certainty and resilience in the underlying fundamentals surrounding long term residential investment in all its forms are the order of the day.

Brexit dominates the press but investors appear to have decided that despite this, business must continue, money has to be deployed and people need somewhere to live whatever happens with Brexit.

As always, carefully researched pricing is absolutely key at the current time.

Regional investments all over the UK and in particular in the north where higher yields can still be found remain popular with investors. Stand alone unbroken freehold blocks of flats as always, remain the most popular and to a lesser extent, portfolios of houses and the secondary student sector.

Demand from high net worth investors in the sub £5M sector seeking healthy yields continues unabated

The demand from high net worth investors in the sub £5M sector seeking healthy yields continues unabated but alongside these, there are a number of existing institutional investors with significant appetite for volume and yield.

In addition, Local Authority acquisitions in this sector are coming to the fore, some of whom are well organized and proving to be very competitive for certain assets.

The most notable change (albeit perhaps not unexpected) has been a strong uptick of interest in London from a sales and acquisition perspective. Albeit it is still a little too early to tell for sure but on a deal by deal and a location by location basis, some investors perceive the market to have reached the bottom and some vendors are looking to cash in on good quality London centric assets.

The prediction for the remainder of 2019 is perhaps the most important one. ‘Confidence’ is probably not the right word but ‘resilience’ with a hint of optimism (and a palpable future sense of relief) post Brexit and a very possible ‘Brexit bounce’ is the muted undertone.