Investment volumes in UK property predicted to total £55bn in 2018
JLL UK has predicted that investment volumes in the UK property market in 2018 will total around £55bn, with returns of 6.4%. This is slightly down on the £60bn investment volumes and 10% returns the firm now expects for 2017.
The real estate firm has cited the impact of the removal of the capital gains tax exemption for overseas investors in UK commercial property as a temporary blow to the market but that the new regime will not deter investors in the long term. JLL also predicts that the UK, and London in particular, is likely to be a key destination for Japanese and Korean capital.
Jon Neale, Head of UK Research, JLL, said: “Undoubtedly there will be investors who are dissuaded by the capital gains tax changes, but the change only aligns the UK with most other developed countries. In spite of this, the major reasons for investing in UK property remain – liquidity, lot sizes, landlord-favourable leases, the strong economic and leasing fundamentals, and at present, relatively high yields and a weak currency.”