New data from estate company Savills has shown that UK investors spent over £18.8 billion on UK commercial property in the first seven months of 2018. This was 12.9% up on the same period in 2017.
There were 56 high value deals over £100 million to July 2018. This is down from 70 in the same period of 2017.
The head of commercial research at Savills, Mat Oakley said that offices and industrial property have performed well. Retail sector landlords have experienced pressures by struggling retailers to keep rents rises low and this has affected the rental yields in this property sector.
Investments by overseas investors totalled £12.8 billion, 21% down year on year. Overseas investors tend to focus on prime high value property.
Mat Oakley predicts that the commercial property market will continue to attract many UK investors during the rest of 2018. Lenders are offering commercial mortgages at good interest rates. Specialist lenders have bridging loans for refurbishing property or to complete property purchases if there are delays in mortgage funds being available. A mortgage and bridging finance broker can source the best deals for investors.
August is generally a quiet month for property deals, but some bridging lenders have reported that the seasonal slowdown on demand for property loans has not happened in 2018. Fierce competition between alternative lenders has kept interest rates down and many innovative bridging finance products have been launched to help investors.