Research
Thu, 01/08/2024 - 12:00
· 1 min read

UK Economic & Real Estate Briefing – August 2024

As the next interest rate cutting cycle begins, we remain optimistic that the UK’s economic growth will continue to strengthen. This bodes well for the ongoing recovery in UK real estate markets.

  • While fiscal challenges will limit the government’s ability to stimulate the economy in the near term, its supply side policies bode well for long term economic growth.
  • The Bank of England delivered its first interest rate cut in four years at its August meeting. The accompanying comments from Governor Bailey support the view that the future pace of cuts will be gradual.
  • The latest figures show £12.5bn of UK commercial real estate (CRE) investments changed hands in Q2 2024, up 25% on Q2 last year and the highest quarterly total since Q3 2022.
  • Pricing for prime assets has reset, and debt costs are now falling in the wake of the first Bank Rate cut in four years. In turn, liquidity is likely to continue recovering as we approach year-end. 

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UK Economic & Real Estate Briefing – August 2024