UK commercial property update and outlook
The June data show the beginnings of another shift down in commercial property capital values for the second half of the year, albeit it is likely to be a much more moderate one than during H2 2022. This is set to impact the different property sectors unequally, however, with offices particularly affected. More positively, the market now expects the rise in the Bank Rate to be shallower than previously expected a few weeks ago, which has given some respite to investors. Investment activity has been subdued and fell for a sixth successive quarter in Q2 2023 from Q1 2021’s peak.