CPN members Vickery Holman share insights on the South West investment market.
The investment market South West continues to show resilience, even in the face of changing economic conditions. Many had anticipated that the Bank of England’s gradual reduction in interest rates would inject renewed energy into the sector, but in reality yields have remained largely unchanged. Investors are still targeting the same rates of return as they did when interest rates were higher, underlining the stability of their expectations.
While activity levels might not be booming, the lack of available property is ensuring that when opportunities do come to market, they attract healthy levels of interest. Investors remain selective, but competition is strong for quality assets.
Property remains a sought-after asset class, but the lack of stock is holding back overall transaction volumes. Many landlords are choosing to hold onto their properties rather than sell, which is restricting supply.
Looking ahead, further reductions in the Bank of England’s base rate could begin to shift investor behaviour. If savings rates fall in line with the Bank rate, those currently benefiting from above-average returns on cash may start seeking alternatives. That could mean more buyers entering th