The residential property market in the UK is continuing to demonstrate growth with £800 million of capital committed by mid-June, according to the latest report from CBRE on UK Residential Investment Yields for the second quarter (April-June) of 2018.
Transactions worth £250 million are expected to close by June end, as more deals are in the pipeline. The investment activity in the UK residential market between April-June 2018 has surpassed the industry expectations despite speculations about a slowdown in the market.
In addition to London, property transactions have been reported from many other regions, including Edinburgh, Reading, Milton Keynes, and Southampton, demonstrating the strength of investor interest across the UK.
Joint ventures, platforms and access to land will remain a key theme going forward for investments in the residential market with the focus being on Build-to-Rent sector as the sales exit strategy.
It is evident that investors are making adequate gains with the net yield from investments showing stability in the last three months. The net yield from Prime London property was 3.15 per cent in London; 3.5 per cent from London zones 3-5; 3.75 per cent from Outer London and 4.25 per centre from prime regional centres.
These figures show that the UK and specifically London are preferred by investors because of the strong fundamentals of the property market. The buoyancy in the market reflects the investor sentiments.
Q2 has surpassed expectations, with more than £800m of capital committed by mid-June and more than £250m worth of deals expected to close by the end of the quarter - CBRE