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

Letting Agent Talk

Landlords and tenants advised to work together to get through extreme heatwaves

With some areas set to be hotter than Portugal this week, lettings and estate agents across the UK are issuing advice to protect properties ahead of extreme weather Prolonged periods of hot weather across the UK are placing additional pressure on homes, from overheating and poor ventilation to damage caused by extreme temperatures. Today, lettings…
Read More →
Estate Agent Talk

Nearly half of UK home listings fail to sell

A London estate agent has warned that thousands of homeowners across the UK are pricing themselves out of the market by setting asking prices that no longer reflect what buyers are willing to pay. The warning comes after new analysis by Zoopla, covering more than two million property listings between 2023 and 2026, found that…
Read More →
Rightmove logo
Breaking News

Lowest number of new build developments coming to market since 2017

New analysis from the UK’s largest property platform Rightmove reveals that the number of new build housing developments coming to market is at its lowest level since January 2017 The figures are despite the government’s target to build 1.5 million homes over the course of this parliament Higher mortgage rates continue to set a challenging…
Read More →
Estate Agent Talk

What Every Estate Agent Should Tell Clients Before Moving Day

For most estate agents, the job is done once contracts are exchanged, completion takes place, and the keys are handed over. For your client, however, that’s when one of the biggest challenges begins. Moving day has the power to turn months of excitement into an incredibly stressful experience, or a smooth finish to what has…
Read More →
Breaking News

Breaking Property News 9/7/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   PropTech is evolving but WhatsApp is still winning the Property transaction battle A home-moving process that a decade of PropTech failed to fix   Thought leadership by Olivier Jauniaux Founder of NestLink There are a particular series of messages, somewhere in every property chain, that decides whether…
Read More →
Breaking News

Heatwaves haven’t diminished love for south-facing gardens

The latest research from Yopa reveals that despite 81% of people saying they have been avoiding their garden during the recent heatwaves, south-facing gardens continue to be the preferred orientation of choice for UK homeowners, attracting house price premiums of over £20,000 on average. However, the insight from Yopa also suggests that should heatwaves become…
Read More →