NW property investment ‘to return to pre-recession levels’

PROPERTY investment volumes in the North West are expected to exceed pre-recession levels by the end of the year, according to new data.

Commercial agent Colliers is predicting the value of regional investment deals will beat the 2007 figure of £3.4bn.

It is forecasting that national investment volumes will reach £60bn by the end of the year – the first time since the recession.

Colliers is citing a shift in investment towards the regions as a key factor for the increase, as investors look outside of the capital for higher yielding opportunities.

Investment outside London in the year to date has risen to £12.2bn – 38% of the total investment across the UK. The North West is the only region outside of London where investment volumes have already surpassed the 2013 total at £2.3bn so far, against £1.8bn.

Jonathan Mills, head of NW investment for Colliers, said: “The UK investment market’s forward charge continues full steam towards the year-end. Apart from a brief pause for reflection on Scottish investment, pending the referendum outcome, demand from all quarters has continued to grow. Regulatory changes for pension annuities in March of this year seem not to have dented institutional demand for long dated income with RPI increases.

“Strong demand across the commercial sectors and demand for regional assets grow stronger as investors continue their ‘search for yield’ outside of London.”