In light of the 2015 UK general election coming to a dramatic conclusion, property company Savills have responded with their views on the effect it will have on the commercial market, which overall seems minimal.
According to Savills’ head of European commercial research, Mat Oakley, the market has barely seen a change from the election, saying that in the first quarter of 2015, investment volume was strong, with its value being over £17 billion. The strongest first quarter in fifteen years.
Meanwhile in central London, the commercial investment market is showing great strength, with Q1 turnover being 28 percent higher than it was last year, at £3.1 billion. Sixty percent of which were non-domestic buyers.
The image of the UK being one of the strongest locations for strong and stable investment will set to continue, while non-domestic investors are looking at the market outside of London.
He goes on to write: “Indeed, the first four months of 2015 have seen £5.4 billion of non-domestic purchases of commercial real-estate investments outside London, nearly half of the total volume that was seen in 2014”.
Oakley goes on to express the political concerns that could potentially affect this overall positive market. Saying that there are a selection of “non-domestic banks that face shareholder pressure to redomicile outside the UK due to the rising costs of the Bank Levy”.
The scenario of the EU referendum was also mentioned and how if the UK did leave the EU, then London’s appeal to Asian and US businesses will diminish.
Concluding however, it says that despite that hypothetical scenario coming into fruition, high returns and political stability that the UK offer international investors will continue to make it the choice location for global investors.
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