Simon Wainwright

Today we published the CBRE UK Property Investment Yields for September 2024. We reported no change to yields as a pick up in deal volumes anticipated by many following the recent base rate cut is still awaited. A sector by sector summary is below. If you are interested in subscribing to our monthly yield publication or wish to discuss this further do reach out. Retail - Yields remain resilient for sub £5m lot sizes in prime locations. Secondary remains asset specific. Out of Town Retail - New opportunities awaited post summer as most existing stock now spoken for. Industrial - Most activity with multi let estates and opportunities where reversions are attractive. Offices - Slow pick up in transactions as stronger interest in larger lot sizes is awaited. Long Income - More stable yield categories as confidence improves. Hotels - No change in yields, however investment activity continues to gather pace fuelled by portfolio deals. Both the CBRE IP and Valuation teams are currently very active with significant mandates. Residential - Market continues to trend stable, with improved investment volumes anticipated following recent base rate cut and announcement of new Government. Student - Strong demand for the most prime properties, but purchasers pushing for meaningful discounts on non-core assets not meeting all best-in-class requirements.

53

As the UK's population continues to rise, the demand for rental properties is set to increase, presenting a promising opportunity for property investors. The National Residential Landlords Association (NRLA) has outlined key priorities for the next government, emphasizing the crucial role of the private rented sector in meeting the housing needs of millions. The rising mortgage rates have further underscored the importance of rental properties, as many first-time buyers delay their plans to enter the property market. Property investors and buy-to-let landlords are experiencing heightened demand in the UK rental market, with many tenants choosing to stay longer in their rental homes, thus adding stability to the sector. The NRLA is advocating for significant reforms, including the removal of Section 21 eviction rules and the establishment of a robust 10-year housing strategy. Such measures aim to enhance housing standards, ensure consistent enforcement, and support the creation of homes across all tenures. With the UK's population projected to grow by 10% over the next decade, the rental sector is poised for sustained growth, particularly in towns and cities with strong job markets like Manchester and Birmingham. This presents a lucrative investment opportunity, as the demand for rental homes is expected to rise significantly, driven by the evolving job market and increased labor mobility. #Rent #PropertyInvestment #UK

5

Urban Splash Residential Fund and Citu partner for £200m UK housing deal By IPE 1 November 2024 The Urban Splash Residential Fund (USRF) has partnered with UK property developer Citu to secure a £200m (€237m) pipeline of sustainable homes in Northern England. The SURE Capital Partners-managed UK residential fund has agreed the partnership to enable it to gain priority access to Citu’s properties and single-family homes in Yorkshire over the next five years. The initial phase of the 600 homes partnership involves the acquisition of 52 homes in Leeds and Sheffield. Akeel Malik, partner at SURE Capital Partners, said: “This deal connects capital with regeneration, allowing us to play a pivotal role in creating vibrant new neighbourhoods. Leeds and Sheffield are exciting, transformative cities where people want to live, work and play, and we’re proud to help drive that change. “Our mission is to cultivate a portfolio of design-led homes for renters – an approach that aligns perfectly with Citu. We have found the ideal product in their award-winning homes and communities.” Tom Bloxham, partner at SURE Capital Partners, said: “SURE has investors ready to commit to design-led homes. It’s a concept that’s been proven with Urban Splash and now with Citu.” Bloxham said the partnership is another example of how SURE Capital is bringing UK and international institutional capital to work supporting UK “SME developers like CITU, Urban Splash and Javelin Block – with whom we completed a deal last year in Birmingham”. Jonathan Wilson, managing director at Citu, said: “Our growth strategy focuses on creating exceptional sustainable places with a variety of tenures, and we’re excited to introduce a rental offering to our developments both now and in the future, with a partner who shares our vision and responsibility. “This collaboration enables us to move ahead with confidence, and we look forward to the next steps.” We’re glad to see that you may be inspiring others with our journalistic content. We ask that you copy our content for personal use only, so as not to violate our Terms and Conditions. Otherwise, ask about our group memberships via [email protected]. Text copied from: https://lnkd.in/dxeEzxCx

130

2 Comments

Homes.com v Realtor.com The Portal Wars Continue to Heat Up The portals are fighting an increasingly heated domestic "portal war", with the front line migrating to international turf. The domestic real estate brokerage and portal industries are being disrupted by a crowded and fluid legal landscape. The litigation includes 20+ class action lawsuits as well as an ongoing lawsuit between the National Association of Realtors (NAR) and the Department of Justice (DOJ). The NAR entered into a settlement agreement, with practice changes taking effect on August 17th, and a hearing pertaining to final approval scheduled for November 26th. Regardless of what happens on November 26th, the dispute between the NAR and DOJ is a long way from over. The NAR signaled its intent to file a Writ of Certiorari, seeking to overturn an adverse ruling in the D.C. Court of Appeals. Moreover, the Gibson case is one of the lawsuits to keep an eye on, with potential damages of $200 billion and a deep pocketed defendant - Berkshire Hathaway Energy. While a great deal of attention has been justifiably focused on the impact to brokerage firms, some of the biggest changes that will take place are those related to real estate portals. This includes companies such as Zillow, CoStar's Homes.com, News Corp's Realtor.com, and the Multiple Listing Service. CoStar's Andy Florance has a long-standing vision of digitizing real estate transactions, and continues to assemble the pieces needed to transform his digital realty dream into reality. Two examples are the acquisition of Matterport and the $1 billion being spent on marketing Homes.com. Moreover, Florance acquired the #3 portal in the UK, OnTheMarket. News Corp owns some of the world's leading portals, REA and Realtor.com, and isn't ceding any ground in an increasingly bitter rivalry - which now extends to the courthouse. REA just announced that it is increasing its bid for Rightmove, the UK's leading portal, and an important piece in the increasingly international portal wars.

6

Arc & Co. has seen its volume of bridging loans arranged in H1 2024 rise to 43%, jumping from 29% in H2 2023. In the company’s Summer Real Estate Funding Report — based on the company’s completions across all elements of the business during the first half of 2024 — the firm reported that bridging was its largest loan type by volume, followed by commercial (accounting for 27% of all business) and marine (13%). Commenting on the results, Andrew Robinson, CEO at Arc & Co Group, said: "In the first half of 2024, the number of new clients we supported doubled." Read the full story at B&C: https://lnkd.in/eNPkT-X9

29

Really useful summary from my better half on how the build to rent market offer is evolving in the UK and its capacity for growth in the years to come.

16

#JDWJournal | Head of Sales, Jimmy Waight discusses how the peak of the spring market presents an opportune time for both buyers and sellers to make significant moves in the property market. Click here to read more 👇 https://lnkd.in/epF-zPwY #johndwood #spring #sales #estateagent #property #propertymarket

15

1 Comment

A large and stable Institutionally owned private rental market has to be part of the short and long term solution to the UK's housing needs. At abrdn we are huge believers in the BTR market and the provision of quality service and amenities within buildings that help to create communities, as exemplified by our joint venture partners at John Lewis Partnership and the exciting new homes we will be bringing forward together. As with all tenures of housing though, to truly make a difference to housing supply and for the sector to reach the levels of Institutional ownership and liquidity it has in other countries, we also need to widen our outlook. Modern management systems and good design allows us to also invest into a leaner rental product that still provides excellent quality and certainty of tenure to tenants. As investors and developers we should be looking at the breadth of where we can invest as well as deepening our exposure in the more established areas of the market. Green Street News were kind enough to let me talk about this subject in more detail in the attached article. #housing #BTR #living

84

4 Comments

Best Deal Properties director Erskine Vella shares how exploring global real estate trends shaped the properties they offer today 🌍🏡 #BestDealProperties

1

🚨 Attention Landlords & Property Managers! Are you up to date with the latest changes in the Renters Reform Bill? These amendments bring a transformative shift in the regulation of HMOs and extend the responsibilities of both superior and immediate landlords. 🔍 Our newest blog post delves into these critical changes and explains what they mean for your property management practices. We're talking about expanded accountability, significant legal adjustments, and the future of selective licensing—areas you can’t afford to ignore! 🔗 Click here to read more and ensure your properties remain compliant! https://lnkd.in/ee_t4CCb #PropertyManagement #HMOs #LandlordResponsibilities #RentersReform #Compliance #RealEstate

4

LondonMetric Property PLC (LMP), a leading real estate investment trust (REIT), has reported a significant swing from a loss to a profit of £119m in 2024. Read more https://lnkd.in/dtnV9Pgm #pts25 #proptechshow2025 #proptechshow #proptech #londonproptech #proptechinscript #realestate #propertymanagement #propertyinvestment

9

Navigating Manchester's Article 4 Direction for HMO Investments "Manchester's Article 4 Direction requires planning permission for converting properties into HMOs in certain areas. Investors should be aware of these regulations to make informed decisions and avoid potential legal issues." Source: https://lnkd.in/e5722jaD Edward Mellor Cabal Capital helps investors navigate complex planning regulations to maximise HMO potential. Unlock the best opportunities in Manchester and connect with us today!

2

For those who decide at short notice: WBEF webinar: Housing markets in 2024 and beyond: How can the sector leverage change? Wed 2 Oct 2024 • 10:00 - 11:00 BST / 11:00 -12:00 CEST https://lnkd.in/erv8_nm3 #RICS #WBEF #Housing

1