Eurozone debt cloud hangs over UK property investment
Debt concerns in the eurozone remain a risk for UK property investments despite 2011 exceeding expectations, according to consultants.
The latest Property Snapshot from Colliers International shows, however, that expectations of a UK recession in 2012 have moderated.
It states that prime property pricing is stable but the secondary sector is weakening further with more distressed assets expected to reach the market as discounted loan portfolios are sold to investors who will start to sell piecemeal.
It also states that the retail sector performance is not improving, further administrations are expected, rents are falling and landlords continue to brace themselves for further stress.
Despite economic weakness, the office lettings market has been seeing more activity. Rents are stable and in London’s West End are linked increasingly to specific buildings, rather than to individual submarkets.
In the industrial sector prime distribution units over 100,000 square feet are still in short supply. Multi-let industrial parks are seeing limited but steady demand. Landlords are still struggling.
House prices are generally stable, even though down marginally year on year. Lending volumes and terms are not improving, which is encouraging the growth of private landlords, states Colliers and foreign investors are tracking UK economic fortunes closely.
‘Expectations of a UK recession in 2012 have moderated with a British Chamber of Commerce survey suggesting that a recession is not a foregone conclusion. Further improvement in service sector PMIs from 52.1 in November to 54 in December suggests that there is a strengthening in GDP trend,’ stated Walter Boettcher, director of research and forecasting at Colliers.
‘Eurozone developments remain a major risk and continue to distort capital market activity and wholesale funding for banks. The latest Bank of England Credit Conditions Survey shows that only a minor improvement in corporate debt availability is expected in the first quarter of 2012,’ he explained.
He also stated issues such as EuroHypo and SocGen pulling out of the UK market and falling inflation are set to have an impact.
‘Despite improved UK economic sentiment, eurozone financial issues continue to distort capital markets and undermine consumer confidence,’ he concluded.
More source:
Eurozone debt cloud hangs over UK property investment | Europe ...Retail market news - Property Wire
Commercial property market news
News articles related to UK Property Prices
Random News
- Property prices in Turkey creeping up, latest index shows
- Google to Charge Top Map Users
- With spring, some hope for stifled home sellers
- Newsletter Correction - Free Plants
- Design and Geoscience Collaborate
- U.S. Mortgage Rates Remain at Record Low for Third Week
- Famed NYC Hotel Chelsea is for sale
- The Status Of The Australian Housing Market
- Over-Wintering Waterlilies
- Bank of America tries to foreclose on a Seabrook house that isn’t there
Submited at Thursday, January 26th, 2012 at 3:01 pm on News by jessica
Comment RSS 2.0 - leave a comment - trackback