United Kingdom Residential Property Investment Yield Sheet, December 2017
The residential investment sector is continuing its trend of behaving like the commercial real estate market which is typically characterised by deals stacked up at the year end. With only £300 million worth of capital committed since our last yield benchmarks were issued in early September it feels like a poor return on the £1.5 billion - £2 billion worth of assets that were under offer at that time.
However, there remains a significant number of deals in hand and with a fair wind the volume will easily exceed 2016’s total of £1.8 billion.
Demand for up and let stock remains strong with good levels of bids for a number of assets
recently marketed by CBRE. At the prime end in London the market is very sensitive to economic concerns with flatter rental growth prospects.