Rise in demand for UK commercial property
An increasing number of UK and international investors are gravitating towards the UK’s commercial property market, several recent studies suggest.
According to the latest data released by HM Revenue & Customs (HMRC), UK commercial property transactions hit 127,280 in 2016/17 – representative of a six per cent rise over figures recorded the previous financial year.
The data reveals that the number of investors pumping money into UK commercial property has hit a nine-year high – while numerous property bodies have said that the market will become even more competitive throughout the remainder of the year.
Separate research carried out by the National Landlords Association (NLA) appears to suggest that the number of buy-to-let investors eyeing up commercial investment is on the rise.
In July 2015, only ten per cent of landlords told the NLA that they would be interested in commercial property investment in the near future – a figure which almost doubled to 19 per cent when respondents were quizzed again at the end of 2016.
The Royal Institution of Chartered Surveyors (RICS) has since noted a significant rise in demand for commercial property, which it says has extended ‘across all sectors’.
The group’s last survey – which focused on the first quarter of 2017 – found an 18 per cent quarter-on-quarter rise in the number of respondents reporting an increase in commercial property enquiries.
Experts have said that recent falls in the value of sterling have attracted increased interest from overseas buyers and investors.
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