UK Economic and Real Estate Briefing – November 2020
The UK Economy has recovered approximately two thirds of the output that was lost in Q2. However, the second lockdown will weigh on sentiment and the recovery, stalling the UK real estate market’s tentative recovery.
The first estimate for Q3 reveals the UK economy grew by 15.5% q-o-q, the largest quarterly increase since records began in 1955.
As is stands, UK GDP is still approximately 10% below the levels of the end of 2019.
Central London’s office leasing market remains challenging. With tenant space up 125% this year, we are starting to see a downward correction in rents.
A fall in values is likely to follow, but this is being offset by fierce competition for core investments, spurred on by low interest rates and lack of yield in the bonds market.