Key themes for UK property


Good quality refurbishments in the cores of the big seven regional cities will mirror the strong performance that has been seen on similar assets in London in recent years. In London, future core development in locations that offer cheaper rents looks persuasive.


Prime West End retail rents to continue to rise at over 6% per annum. The strongest locations will be emerging luxury submarkets rather than the traditional core streets. Outside London the best shopping centre and retail warehouse parks will be those that dominate their catchments.


Still good opportunities in the core distribution markets if you can find the land. The biggest play in this segment may be in multi-let industrial estates in London and the South where the new permitted development rights could enable conversion to residential.

London hotspots

Though price growth across London as a whole is likely to be limited by mortgage regulation and interest rates, specific areas such as Ealing, Acton, Greenwich and boroughs such as Lewisham and Waltham Forest may buck the trend as they attract more affluent buyer groups.

Attractive commuter towns

These continue to offer good medium term price growth compared to more expensive London locations, particularly where travel times are shortened by rail improvements.

Graduate hotspots in regional cities

Good second hand stock in centrally located areas of regional cities that are favoured by graduates are likely to deliver higher yields than their London counterparts, without rental incomes being reliant on welfare payments. Improving regional employment markets should underpin tenant demand.


15 Mar 16

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