UK real estate weekly round-up: Week 42 2023 | HS2 land sales, house prices drop at sharpest rate since 2009, tech investments among volatile market
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House prices fall at the sharpest rate since 2009, real estate companies press ahead with tech investments despite volatility, HS2 land sales and more.
Tech investments a priority despite volatile markets
A new study by JLL suggests that over 80% of commercial real estate owners are prepared to invest in tech to enhance strategic value and revenue. The research anticipates a notable increase in real estate tech budgets, with sustainability tools expected to have the largest budget share, followed by artificial intelligence.
Octopus Real Estate announces 53.5m development loan
Leading UK specialist real estate lender and investor Octopus Real Estate has delivered a ￡53.5m development loan to build 278 new apartments in Birmingham. The loan to Investin PLC will help create a large number of ‘much needed high-quality’ homes to the local area and will form part of the Birmingham Southside regeneration programme.
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Flagship retail property fund closes
M&G Investments plans to shutter its ￡565 million M&G Property Portfolio due to dwindling interest among UK investors in open-ended real estate funds. The fund, established in 2005 to grant retail investors access to high-end commercial property returns, has lost favour amongst investors because of political and economic volatility caused by the pandemic, Brexit, and last September's ‘mini budget’. These forces have seen many investors turn to more liquid assets with shorter term returns.
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“Everybody loves [to be] a landlord”
House prices fell at the sharpest rate since 2009 in August, with a net balance of 68% of property professionals reporting declines, mainly due to mortgage rates exploding. In contrast, the rental sector experienced rising rents due to a substantial gap between supply and demand, according to the Royal Institution of Chartered Surveyors. New buyer inquiries dropped, along with new sales instructions and newly agreed sales.
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Dispute over HS2 land sales
The UK government's infrastructure guru, Sir John Armitt, is urging a three-year halt in the sale of land earmarked for HS2's second phase over fears it could exacerbate rail congestion on the crucial Birmingham to Manchester corridor. This call for a cooling-off period comes as he also emphasising the importance of delivering the HS2 link to Euston, even with public funding if necessary.
Curated by the BloomSmith team
Quantity Surveyor
1 年https://petition.parliament.uk/petitions/648150