Back in September, The CPN Investment Panel discussed the growing sense of optimism returning to the commercial property market — predicting that investor confidence would start to build in the run-up to the Chancellor’s second Budget. Two months on, that confidence is beginning to show through.
At our most recent The CPN Investment Panel meeting, members reported that many of the positive indicators we identified earlier in the autumn are now materialising — particularly in and around London and the South East, where the ripple effect is beginning to spread outward.
Early Momentum in and Around the Capital
Members closer to the capital are seeing encouraging signs of movement. There is more stock coming onto the market, particularly in well-located office and mixed-use sectors. At the same time, private equity and institutional buyers are becoming more active, seeking out opportunities in a market where values are increasingly attractive.
As one panel member put it, “Office space is now being very well priced — and people are beginning to recognise that.”
This is creating genuine momentum: not just more stock, but more buyers actively looking, viewing properties, and making offers. It’s a subtle but significant shift in behaviour — from a watch-and-wait mentality earlier in the year, to one of selective, confident engagement.
The Ripple Effect Begins
While this renewed confidence hasn’t yet filtered fully across the UK, the panel felt strongly that the ripple effect is underway. London and the South East are often the first to respond to changing market sentiment — and as demand increases there, we expect this activity to spread across the regions over the coming months.
As one member neatly described it:
“The pebble has been dropped in the pool — and the ripples are beginning to reach outwards.”
Resilience Amid the Budget Noise
Interestingly, this renewed confidence appears to be developing despite, rather than because of, the ongoing noise surrounding the forthcoming Budget. With constant speculation about potential tax and fiscal changes, members observed that investors and occupiers are simply tuning out the noise.
Rather than waiting for political clarity, people are getting on with doing deals and identifying opportunities — recognising that there is very little they can do to influence the Budget, but plenty they can do to act within the current market conditions.
This points to a growing resilience and maturity in investor behaviour. The commercial property market has become increasingly adept at adapting to uncertainty, with decision-making driven by opportunity rather than speculation.
Outlook
While the next few months will inevitably be influenced by the outcomes of the Chancellor’s announcements, The CPN Investment Panel remains confident that momentum is building. Activity levels are rising, pricing is adjusting to reflect new realities, and both investors and occupiers are showing a renewed appetite to move forward.
The positive signs we predicted in September are here — and while they may have started in London, the ripple effect is spreading. For The CPN’s members across the UK, the message is clear: the market is moving again, and those prepared to act decisively are already benefitting.
Menu