UK commercial property update and outlook
September 2023
The Bank of England’s narrow vote to maintain the Bank Rate at 5.25% in September after 14 consecutive rises has been a boost to the investment market. The consensus is that we are now at the peak of the current rate cycle, albeit for a sustained period. Nevertheless, the price correction for some segments will continue, notably for offices and some secondary markets across all sectors. Broadly though, most UK sector valuation yield profiles continue to be remarkably flat, with only very minimal outward drift and an All Property quarterly total return of effectively zero in August.
