Investments in UK property in the first half of 2007 exceeded £ 27 bn (EUR 40 bn), in line with investment in the year-earlier period, according to figures from Jones Lang LaSalle. JLL’s head of capital markets Julian Stocks said he expects to see a slowdown in investment in the second half of this year. 'With inflows into the UK retail funds slowing and swap rates over 6%, there is definitely a change occurring in many of the markets in the UK. Yields in certain areas are moving out and the number of bidders falling.'
Investments in UK property in the first half of 2007 exceeded £ 27 bn (EUR 40 bn), in line with investment in the year-earlier period, according to figures from Jones Lang LaSalle. JLL’s head of capital markets Julian Stocks said he expects to see a slowdown in investment in the second half of this year. 'With inflows into the UK retail funds slowing and swap rates over 6%, there is definitely a change occurring in many of the markets in the UK. Yields in certain areas are moving out and the number of bidders falling.'
Stocks added that the continuing improvement in occupational markets and a possible fall in borrowing rates could lead to a pick-up in the UK markets in 2008. First-half investment was boosted by some major transactions, such as the £ 1.1 bn sale of the HSBC Tower to Metrovacesa. Oversees investors pumped £ 5.5 bn into the market in the first half, with US and Irish investors especially active. UK investors were net sellers, with disinvestments of £ 5.5 bn.
