Investment volumes in the North West of England are expected to exceed peaks of 2007(£3.4bn) by the end of the year, according to new research from Colliers International.
This trend is reflected nationally with Colliers forecasting that national investment volumes will reach £60bn by the end of the year – the first time volumes have reached above £60bn since the crash in 2006. 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 of London in the year to date has risen to £12.2bn – 38% of the total investment across the UK. The North West has been the greatest beneficiary of this shift in investment, with the North West being the only region outside of London where investment volumes have already surpassed the full year total for 2013 (2013: £1.8bn / 2014 YTD: £2.3bn).
Jonathan Mills, Head of NW Investment for Colliers International, 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.”
“On the supply side, an increasing number of portfolios are emerging, either directly from the banks as loan sales, or from sponsors as consensual sales. Increasingly, these portfolios are beginning to have a cross border flavour with a spread of assets across the UK and mainland Europe.
“For now, we see direct investment volumes across the UK cruising towards a full year total of £60bn, with the North West seeing the greatest regional proportion of this investment outside of London.”Colliers International’s Annual Global Investment Sentiment Report
, released in November 2014, further reflects on the state of the UK investment market.
Findings show that 85% of UK-based investors in the survey expect investment volumes in 2014 to exceed 2013, with 35% expecting an increase in excess of 10%.