Fergus Laird of Naylors reflects on a year of change and how it might impact the investment market

November 2016

As 2016 comes to an end, Fergus Laird Head of Investment at Naylors reflects on a year of significant political change and what effect there may be on the commercial property investment market.

As with all investment vehicles, the commercial property investment market is driven by risk.  2016 has had more than its fair share of political activity in the UK and abroad, which has meant we are in the middle of an unprecedented period of uncertainty.

In June, the investment market was particularly subdued, even though the general expectation was that after the impending Referendum the UK would be remaining in the European Union and everything would soon return to normal in terms of property transactions.

The vote to leave was a major shock and the immediate aftermath was a very short period of devaluation, concern and then a swift return to relative normality, particularly in the regional market.

Roll on five months and one night in early November we all went to bed with the expectation and pollsters opinions that the Democrats would remain in the White House.  Another shock result gave us ‘Brexit plus plus plus’, as Republican candidate Donald Trump was announced President-Elect and more uncertainty was born.

In such a political climate it is difficult to predict what is going to happen to the UK Economy over the next twelve months, never mind the next two to three years.  In March 2017 the button will be pushed on Article 15 and Donald Trump will be three months into his Presidency. There are potentially tremendous changes around the corner.

However, what we do know is that the UK has always been a safe haven for cash.  Since June 2016 we have been involved with an unprecedented level of transactions for high net worth individuals and cash rich property companies looking at the returns and relative security that commercial property offers.

We have completed a number of ‘off market’ deals where we have married clients’ requirements to property assets, which we knew could be acquired. In our region, we expect to see well located retail and industrial properties thrive over the coming years as the economic outlook for these sectors in particular looks to be positive. In a world of uncertainty it is more important than ever to use the services of professionals who know their market.

If you would like to discuss the sale or purchase of investment property contact Fergus Laird of Naylors on 0191 232 7030 or email ferguslaird@naylors.co.uk

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