Published on Wednesday, 11 May 2016
The Q1 2016 RICS UK commercial property market survey has been published with the key headline being that expectations remains generally positive despite growing referendum unease. The underlining market fundamentals remain solid for both occupiers and investors although capital value and rental growth is expected to decelerate a little further going forward.
We always have to put the RICS survey in to context as it covers the UK as a whole and also draws significant feedback from the big surveying practices who are based in London.
That said levels of market activity in the Yorkshire and Humber region remains solid and we have also seen a small upturn of stock coming to the market which has been an area of key concern over recent months.
The survey widely expects continued growth in the commercial market although it is interesting to note that the rate of growth is expected to fall as we progress through 2016.
There is much speculation regarding the Euro referendum, and whilst there is almost a sense of apathy in our regional market place this is clearly a significant impact on the number of investment transactions on a national basis with 80% of Central London respondents saying that referendum uncertainty had reduced investment in commercial property.
The overall verdict on the impact of an eventual Brexit remains unclear with 43% of contributors suggesting Britain voting to leave the EU would carry negative consequences for the commercial property market with 38% feeling that either outcome would have little effect. Whatever the outcome on June 23rd it is evident that some decisions by both occupiers and investors are being delayed which in many respects is not healthy.
Clark Weightman director Andrew Clark is a contributor to the RICS Survey.
For further information please contact Andrew Clark on 01482 645522.