Published: 9th September 2013
A new report out from Jones Lang Lasalle has claimed that the UK property market is likely to see a slow start to 2012, but will finish the year with suggestions of strong growth leading into 2013. The report goes on to state that 2012 will see two distinct periods of activity, with the first six months expected to remain flat, whilst the second six months will likely see an increase in activity throughout the UK property market.
Executive Chairman at Jones Lang LaSalle, Richard Batten, went on to say ‘It is hoped that the London Olympics will provide a much need boost to confidence. This along with the benefits of another burst of asset purchases by the Bank of England should begin to have an economic stimulus after mid-2012, when activity is expected to improve, albeit fairly slowly,’
The report points out that a number of negative trends such as suppressed consumer spending, will lead to a more subdued outlook for the first half of the year. However, the report states that these negative trends will gradually give way to a revival in occupier demand, which will gradually increase pressure on property prices throughout the UK.
‘This will not be a vintage year for rental growth, especially in the difficult early months. But the shortage of quality supply should continue to underpin headline rents in prime markets, albeit with incentives remaining generous,’ said Andrew Burrell, director, EMEA Research.
‘The rate of increase is set to moderate in all sectors, with prime offices, notably those in Central London, seeing the most marked slowdown in 2012. Average rents have not seen as strong a recovery as prime thus far, but also show modest year-on-year increases. Overall commercial sectors show much greater rental stability than during the global downturn of 2008/09,’ he added.