“Global factors such as the performance of the ruble are dictating investment flows and these are having a greater influence on the market than our own domestic CGT changes,” said White. “In these conditions it is therefore hard to call what the long term impact will be, while these wider economic forces continue to push capital into London.”
54% of those surveyed said they thought investors in the UK would mainly invest in this asset class over the next 12 months
Those surveyed said the European referendum was of greater concern to investors than UK politics with 66% saying that Britain leaving the EU would have a negative impact on inbound cross-border investment but only 31% thought that political uncertainty in the run up to the general election would dampen investment.
Offices remained the most sort after asset: 54% of those surveyed said they thought investors in the UK would mainly invest in this asset class over the next 12 months.
White added: “The UK prime market still struggles from a mismatch of demand versus supply. Competition for assets remains fierce and we are seeing an increase in investors buying for the long term, which is likely to have a dampening effect on supply. There is no immediate solution on the horizon, because there is little development in the pipeline. This is pushing investors up the risk curve to access the opportunities that offer the returns they need.”
