UK commercial property update and outlook
The economy is mired in negative uncertainty and this was reflected in the Q2 commercial property investment volume, which was the second lowest in 10 years. Equivalent yields on some of the keenest priced property segments moved out in June for the first time since the onset of the covid pandemic and a further outward shift in pricing in H2 is broadly expected to offset gains in H1. The investment market has fundamentally shifted in line with increased cost and reduced availability in debt markets. Many investors have adopted a ‘wait and see’ approach over the summer and a period of subdued activity is in prospect.