Britain is an incredibly diverse and exciting country with each town and city offering a unique sense of place. There are around 62 million people living in Great Britain and of these, 82% live in one of our many towns and cities. With their diverse sense of character each area attracts a different type of resident; therefore the property market is just as unique as the people. We have focused on 29 key towns and cities across Britain that are known for their economic strength or relevance to the housing market. This report provides a snapshot of these places and their property markets, as well as reminding you of the beauty and diversity of Britain!
UK commercial property prime rental values continue to increase. Prime rental values increased by 1.3% in Q2 2015, resulting in rental value growth of 2.6% H1 2015. The average prime yield was down by an average of -6 basis points and currently stands at 5.4%, a fall of -32 basis points over the year to date. Across the main sectors, Industrials recorded the highest growth in terms of rental and capital values. Prime rents for the industrial sector increased in 32% of locations monitored, with the highest growth in London. Whilst rental value growth was more evident for offices in Central London, South East and Eastern, yield shift was more even across the UK.
The evolution of traditional pubs to offer craft beer and street food is improving revenues in the sector. The tenanted pub market looks set to become an area of true innovation for several years to come. Managed operators look at the impact of the introduction of the new National Living Wage.
Total returns across UK All Property reaches 6.9% in H1 2015 There was a strong finish to the first half of 2015, with total returns for All Property of 1.3% in June. Capital values continued to increase and recorded growth of 0.9% for the month. So far this year capital values have increased by 4.1%, resulting in total return of 6.9%. High street shops have seen strong geographic divergence in performance since the bottom of the cycle in August 2009 which is still continuing. Offices in the rest of UK recorded an outstanding capital value growth of 1.5%, the highest growth seen since March 2006.
Welcome to the Spring 2015 edition of IN_business. With the renaissance of UK regional cities, there are strong performance prospects for property outside London. Articles in this edition on regional investment across the commercial real estate sectors, and the sunny prospects for UK regional hotels, provide encouraging evidence for those broadening their asset mix in the country’s investment landscape. We also investigate two key issues for those investing anywhere in the UK market: the government’s upcoming review of Business Rates, and property occupiers’ changing attitudes to sustainability. Manchester’s emergence as a Northern powerhouse is confirmed by our IN_terview with Sir Howard Bernstein, Chief Executive of Manchester City Council providing some exclusive insights on devolution and the Council’s vision for the future of the city. In Birmingham we hear about the Paradise scheme, the city centre’s first major speculative office development for over seven years and look at the management challenges of the nearby Cube project. And finally, we feature the CBRE Women’s Network as it celebrates its tenth anniversary and ten years of progress towards gender equality in the property industry.