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News Release

London

Growing Investor confidence across the UK puts pressure on prime pricing

Pricing movements in July reflect the strengthening UK real estate market


London, 8th August 2013 - Jones Lang LaSalle recorded inward yield movement in seven of the 34 segments tracked over the last month alongside stronger sentiment in a further five. Consequently sentiment in all segments, excluding retail in small market towns and offices in secondary towns, is now stabilising or becoming  stronger.

Improvements were witnessed across the UK, with yield compression recorded in regional industrial as well as secondary shopping centres, which saw yields move in 25bps to 8.50% and trending stronger.

South East offices also strengthened with M25 towns and South East business parks seeing yields for the best product moving in to 6.00% and 6.50%, respectively.

Elsewhere, sentiment for high street in regional towns (6.00%) and market towns (6.25%) jumped from weak to stable, while regional business parks (8.75%) leapt from trending weaker to stronger with inward pricing movements anticipated in the near term.

Adrian Peachey, Head of Retail Investment at Jones Lang LaSalle, commented: “The yield figures show that sentiment and confidence over the last quarter is now being translated into pricing and investment return. The reason is a real improvement in confidence throughout the main regional centres and business Britain. This, combined with continued keen pricing in London has meant investors are increasingly confident in Britain’s economic recovery and will buy  strong assets in good locations nationwide. ”