Domestic property investors are turning towards the regions as overseas money continues to dominate the London Market, according to Knight Frank. The news follows a series of reports suggesting that the improving economy is stimulating demand and the boom in prices seen in the capital may be about to filter through to other parts of the country.
There has been a ‘real improvement’ in the Leeds market
Knight Frank group chairman, Alistair Elliot, says that 2013 has seen a ‘strong recovery’ in demand for both residential and commercial property with one in four ‘high net worth individuals’ hoping to invest further in the market before the end of the year.
“In the UK, the prime London market continues to show strong activity and a steady rise in values.
“While international demand has remained strong, the resurgence of domestic demand, fuelled by improving conditions in the UK economy, has added impetus to both activity and price growth.
“On the commercial front, there is increased demand for office space from the technology and media sector as more businesses seek a collaborative working environment,” he said.
Mr Elliot continued to explain that, during the recession, many businesses put off relocating but are now finding that their current properties are becoming obsolete, creating pressure to move. This in turn generates the next wave of occupier demand, stimulates the market and attracts investors hoping to capitalise on the increased activity.
As a result, investment is on the rise in regional centres like Birmingham and Manchester. Another city to experience an upturn in activity is Leeds. Alex Whiting, of CBRE, told the Yorkshire Evening Post that there has been a ‘real improvement’ in the market over the past few months following a ‘dreadful period’ during the recession.
His colleague, Jonathan Shires, added that all Leeds needs now is a ‘five star hotel and some Premier League footballers to fill it.’
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