Prices now deterring overseas investors within UK commercial property.

February 1, 2016

Though not in actual negative, but the it is reported that the Royal Institute of Chartered Surveyors (RICS) said buyer enquiries though still rising, was at its slowest pace since the third quarter of 2013. This is being put down to a slow down in foreign buyer interest for UK commercial property.

The main reasons thought to be causing the slowdown are the fear of falling property prices and legislative changes to taxes including stamp duty.

 

The upward trend in prices for commercial property, especially within London and outer region will no doubt still see an increase in value at least during 2016 mostly down to shortage of supply, but what there after is open to question and may pose a risk to deter further investment. The RICS also recently reported that a vast majority of their respondents fear that central London property prices are over valued. London does not compare to other regions of the UK where opinions include that commercial property value is still open to growth.

Of course, lot unknown due to come in 2016, the low interest rates will keep commercial property prices steady and on an upwards trend, but most certainly foreign investment to central London property will be cautious and will monitor the situation closely.

Simon Rubinsohn, RICS chief economist, is quoted as saying “For the time being the real estate sector seems largely insulated from the turmoil affecting financial markets. Indeed, the prospect of a ‘low for longer’ interest rate environment provides further comfort for those parts of the property market where values are looking a little stretched and arguably more vulnerable to a material shift in monetary policy.“

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Breaking News

Estate Agent Content

Do you think that your estate agency / property business requires content? Is content marketing still a thing in 2025? Are you concerned if anyone will read your words? Is it worth investing in estate agent content? Businesses with blogs generate 67% more leads than those without. As competition for attention online increases it remains…
Read More →
Breaking News

The cost of voids rises by £200 for England’s landlords

The latest analysis by Dwelly, one of the UK’s leading lettings acquisition and success planning experts, has found that landlords have been hit with a 26% increase in the cost of void periods in the past year, equivalent to lost income of almost £200. Dwelly analysed average void period data from March 2024 and March…
Read More →
Breaking News

Breaking Property News 5/06/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Demand Rises for Housing and Infrastructure Projects Rising demand for housing, infrastructure and energy projects across Wales has driven continued growth at Lichfields’ Cardiff office, which this year marks 25 years in the capital. The team of 17 planning professionals is one of the largest…
Read More →
Breaking News

Construction continues to enjoy a season in the sun

Underlying performance is on the rise during Q.2 2025 Today, Glenigan, one of the construction industry’s leading insight experts, releases the June 2025 edition of its Construction Index. The Index focuses on the three months to the end of May 2025, covering all underlying projects, with a total value of £100m or less (unless otherwise…
Read More →
Love or Hate Rightmove
Breaking News

Busiest May for sales agreed since 2021

The latest insights from Rightmove show that it was the busiest May for agreed property sales since 2021, and the busiest out of any month since March 2022 May is typically a busy month in the year for agreed sales, but this year’s figure highlights the improved market conditions, as home-movers carry on following the…
Read More →
Breaking News

New anti-money laundering rules now in effect: what landlords need to know

New anti-money laundering (AML) rules came into effect this month, marking a significant change for landlords and the lettings industry as a whole. The new rules mean financial sanctions checks are now required for all lettings, regardless of how much rent is charged. Here, Steve Bond, managing director of residential lettings for Beresfords, explains what…
Read More →