As investors plan their financial strategies for the coming 12 months, new research released this week has offered some useful insight into the long-term performance projections of the UK’s residential and commercial property markets.
According to Halifax, the average UK house price rose by 2.4% in 2017, and though an impressive return when compared to the performance of other assets, some have questioned whether house price growth is slowing down as a result of declining investor demand. MFS’ upcoming ‘Property Investor Intentions for 2018’ report challenges this assumption, its results revealing an investor community gravitating towards property investment in the coming 12 months.
Looking beyond residential real estate, there exists another part of the property market that has investors equally optimistic – commercial property. Fuelled by investor demand, extending both international and domestic, the commercial property sector is abuzz with activity. Last year, the sector experienced a record breaking £55 billion worth of transactions – the fifth consecutive year transaction volumes have exceeded £50 billion.
Commercial property’s allure not only demonstrates the underlying investor demand for bricks and mortar investment, but it also serves as an important reflection of the long-term attitudes investors hold towards the UK’s future as a global business power. Political shocks such as Brexit and the formation of a minority Government have done little to deter investment in the commercial sector. By investing into property such as office buildings, serviced offices, retail stores, factories, hotels, warehouses and medical centres, investors are evidently confident the UK will remain an important financial market for those seeking traditional secured assets.
To support the demands of the market, MFS offers tailored bridging loans for those seeking to direct their capital into both residential and commercial property. We have previously facilitated commercial loans to support transactions involving office buildings, shopping centres, retail businesses, hotels, nursing homes, hospitals, religious institutions, HMOs and other special purpose properties. We have also arranged corporate finance for airline groups, oil and gas companies, agribusiness and manufacturing companies, demonstrating our ability to provide flexible and bespoke finance solutions across the commercial sector.