Overseas investment into the UK will continue throughout 2016 and this is no bad thing for the UK property industry; this was the overarching finding of the RSM survey carried out by Property Week.
There is a clear indication that respondents feel a significant number of international investors are continuing to focus their interests on the UK real estate market. 73 per cent believe that the level of international investment is set to increase and almost half of respondents think that overseas capital will continue to push residential prices up.
Even though the respondents feel that the level of growth will largely persist in London, 20 per cent still believe that prices will plateau due to lack of investors or unaffordable prices. 'We could see a significant shift in investment outside London, with the south east next in line' says Howard Freedman, head of real estate and construction at RSM.
With the reduced cost of financing, confidence levels have also returned with a wide array of funding sources available. Although a positive perception, Howard warns that 'there is a concern the weight of capital coming into the UK is causing pressure on values, with the possible risk of a ‘bubble’ developing'.
The ‘Where will growth come from?’ survey was carried out in September 2015 by Property Week, on behalf of RSM, with respondents from a wide range of real estate disciplines including consultancy, property development, property investment and agency.