BoE maintains rates - when can we expect cuts and increased activity?

The Bank of England's (BoE) recent decision to maintain its base rate at 5.25% while it awaits further evidence of slowed price rises in considering a potential summer rate cut was largely anticipated by analysts.?

• Along with reaching the inflation target soon, the BoE's positive outlook forecasts economic growth, and increased household savings, setting the stage for a rate cut possibly as early as June, with August or September appearing more likely. With inflation persisting above the 2% target, analysts expect two 0.25 percentage point cuts by the year's end.

Meanwhile, Britain's residential property market has experienced increased activity since mid-March, with Savills now anticipating a growth of 2.5% for 2024 in UK average house prices, as well as an optimistic five-year forecast.

• The latest Royal Institution of Chartered Surveyors (RICS) survey reveals a surge in property listings as UK homeowners have flooded the market, marking the highest increase in new listings since 2020.

However, a lack of buyers has led to a cautious outlook, with near-term sales expectations at their lowest since October 2023, at the same time as Halifax reports unexpected cooling in UK house price growth in April following headwinds from surging mortgage rates.

• For top level industry insights into this developing situation, join us at our GRI UK Real Estate Investments Club Meeting with Shoosmiths at UKREiiF for a roundtable discussion on the key risks affecting the UK’s real estate investment market as we go through 2024.

?? Find out more and register HERE!

Aviva’s George Fraser-Harding - “Little pockets of distress are starting to emerge”

The European real estate market scenario is now less concerning than in 2023, says George Fraser-Harding, Head of Pan-European Funds RE of Aviva Investors.

• Along with recent repricing progress, particularly in the UK, there are a wide range of opportunities available at present, George continued to explain, and expectations are for a K-shaped recovery, with different parts of the economy recovering at different rates.

During an exclusive interview with GRI Club at Espa?a GRI 2024, George shared his perspectives on the current market, revealing the attractiveness of the logistics market due to favourable tailwinds, low vacancy rates, and limited supply due to difficulties in development.

?? Watch the full interview with George Fraser-Harding HERE

Sustainable Food Retail Growth with Abhishek Jha

The latest interview on the GRI Hub features insights on the evolving landscape of the food retail sector from Abhishek Jha, President of the leading French food retail asset manager, Greenman Arth.?

• Abhishek shares a nuanced analysis of industry transformations influenced by factors like the Covid-19 pandemic and shifting consumer preferences, exploring the strategies adopted by major players and the imperative of sustainability in ensuring long-term growth.?

The role of digitalisation in shaping personalised shopping experiences and enhancing operational efficiency was another key topic demanding industry attention in order to capitalise on the opportunities presented by the food retail sector for strategic adaptation and growth.?

?? Read the full article HERE

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