A new survey has revealed that there is a positive feeling in the real estate sector regarding the next 12 months.
An investigation by the British Property Federation (BPF) and Grosvenor Britain shows that 88% of people in the sector have confidence over the coming year. However, this figure drops to 54% when looking ahead to real estate performance over the next five years.
Increases
60% of property owners and investors noted that their company’s development output would increase in 2016. This said, the survey also revealed a number of potential barriers to property supply, which the Government and local authorities could remove.
In London for example, there are calls for the Mayor to both locate and sell developable land, to encourage investment in the build to rent sector. According to results of the investigation, 53% of respondents said that their firm plans to increase investment levels, with 23% saying they will keep them constant over the next year.
For the East Midlands, 60% of landlords said they would increase development and 23% believe it will stay constant. In the North West, these figures stand at 25% and 23% respectively, while in Scotland, these figures are just 16% apiece.
Crucial Regeneration
Melanie Leech, BPF Chief Executive, said, ‘the real estate industry is a vital contributor to the UK’s economy and crucial to bringing about regeneration and growth across the country. It is therefore welcome to see that sentiment over the next year is positive.’[1]
Confidence for coming year high in real estate sector
‘Wider economic circumstances and political uncertainty are outside of our control, but there are a number of things that Government can do to ensure that the outlook remains bright. The next London Mayor has a clear mandate from the industry to assemble and sell public sector land, if they really want to boost development early on in their tenure,’ she continued.[1]
Concluding, Leech noted that, ‘it is good to see that investment is flowing into all parts of the UK however and not just London and the South East. We hope to see this increase as devolution deals continue to be rolled out across the country.’[1]
Unlocking success
Peter Vernon, chief executive of Grosvenor Britain and Ireland believes that the findings of the report are a stark reminder of the real estate’s desire to impact on the UK’s economic future.
Vernon said, ‘the sector’s ability to boost supply will rest in part on Government lowering the policy barriers.’ He went on to observe that, ‘in London, getting more developable public land to the market and unlocking new rental homes to meet growing demand will be key to success.’[1]
[1] http://www.propertywire.com/news/europe/uk-real-estate-sector-2016030411636.html