Spotlight: UK Cross Sector Outlook

UK Cross Sector Outlook
Guidance in a changing market

5 December 2017, by Savills Research

Welcome to the 2018 Savills Cross Sector Outlook, in which our team of research experts forecast the top performers and key trends across each sector

The uncertainty over the UK’s future relationship with the EU will continue to cast a shadow over economic growth throughout 2018, leading to a more cautious outlook amongst investors across all sectors. However, although sentiment and activity may be subdued, it doesn’t mean investment will stop.

 

Property remains a safe haven for capital preservation, and demand for prime, secure investments will be as keen as ever. Yields on many commercial property sectors, for example, are higher than those in much of Europe.

"A shortage of prime stock is leading investors to seek income in alternative assets"

Mark Ridley, Chief Executive Officer, UK & Europe

Although the pace of recovery will be dictated, to a large extent, by Brexit, investors are exploring new opportunities. So, while the mortgaged buy-to-let sector is in decline, there is fresh impetus in the multifamily market. In the commercial sector, a shortage of prime stock is leading investors to seek secure income in alternative assets. Even in the rural and farming sector, which is highly sensitive to the outcome of Brexit negotiations, assets such as renewable energy and agritech offer potential for future gains.

Given the economic climate, making the right investment is crucial. This report outlines the findings of our expert research teams across the commercial, residential and rural sectors. We believe it will help inform your future investment decisions.


Summary

Commercial

As risk aversion remains a major trend, income-producing asset classes such as warehouses and student accommodation will grow in popularity.

Residential

The decline in mortgaged buy to let investors will create opportunity in the build to rent market, while investment focus will shift to the regions.

Rural

With uncertainty dictating rural market sentiment into 2018, scale, efficiency and diversity of income will play a key role.

Articles from Spotlight: UK Cross Sector Outlook 2018

Opportunities in an age of risk aversion

With investor demand focused on secure income streams, our cross sector forecast looks at prospects for income yield and capital growth across a spectrum of assets

Commercial: Break from the crowd

New opportunities are emerging for investors prepared to explore beyond the increasingly scarce pool of prime or secure assets

Residential: Market movers

05 December 2017

Residential: Market movers

With mortgaged buy-to-let investors feeling the pinch, the market is opening up for cash buyers and a rapidly expanding multifamily sector

Rural: Investing in change

05 December 2017

Rural: Investing in change

With uncertainty continuing to dictate market sentiment into 2018, greater efficiency, diversification and natural capital will play key roles in the long term

 
 

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Key contacts

Lucian Cook

Lucian Cook

Director
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3837

 

Mat Oakley

Mat Oakley

Director
Commercial Research

Savills Margaret Street

+44 (0) 20 7409 8781

 

Ian Bailey

Ian Bailey

Director
Rural Research

Savills Margaret Street

+44 (0) 207 299 3099