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Property investment levels set new record as investors grow in confidence

New research published by national commercial property consultancy Lambert Smith Hampton concludes that this performance propelled investment for the year as a whole to £59.6 billion – the second highest annual total on record after the £61.7 billion posted in 2006, and 18% greater than the volume of deals in 2013.

In the latest edition of its UK Investment Transacrtions report, Lambert Smith Hampton reveals that investment in the UK regions increased by 41% to £21.1 billion for the year as a whole – the second highest figure on record. 

This is primarily the result of the resurgence of UK institutional investors, which increased inflows by almost 30% in 2014, buoyed by improving economic sentiment beyond the capital. 

In the East Midlands investment in the commercial property sector totalled £2 billion in 2014 – a 54% increase on the previous year.

Dudley Cross pictured, LSH’s head of office in Northampton, said: “Investment across the East Midlands increased significantly as UK institutional investors looked for less expensive opportunities outside London.

“This is not surprising. Lambert Smith Hampton currently has mandates on behalf of a range of investor clients who are looking to place between £3 million and £25 million across a range of sectors in the East Midlands, demonstrating the appetite for the property sector as an asset class.

“We are also expecting investment to increase in the form of development funding as the market continues its strong recovery.”

LSH chief Ezra Nahome added: “The commercial property investment market enjoyed a stellar 2014, and activity was within a whisker of breaking the record that was set at the height of the last boom in 2006. 

“Transaction volumes are now roughly double what they were as recently as 2012, which reflects investor appetite for commercial property in both London and the regions.” 

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