Thursday, January 21, 2021

UK property still fundamentally safe asset class for investors

Despite initial concerns that a Brexit vote might lead to significant falls in capital values, the latest research by Savills shows that they have actually stabilised in the UK commercial property market, while prime yields have continued to fall since peaking in summer 2016.

Overall, UK prime yields ended last year just 22 basis points higher than at the end of 2015 after peaking at 35 bps higher during August 2016.

According to property advisor’s latest Market in Minutes report, regional hotel yields experienced their first fall since April 2015, dropping from 5.5% to 5.25% in December, while yields on restricted retail warehouses have returned to 5.75%, where they were in January 2016, after peaking at 6% in December 2016.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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