Corporate Finance, Deal Advisory, Transaction services
Industry update: Property
Since the re-opening of the UK in the Spring, the property industry continues to be in a strong financial position with record-breaking valuations.
Optimism in revenue and profitability recovery is expected to continue through to 2022 in both the commercial and residential sectors. However, it may be too early to fully foresee the future of the industry as inflationary pressure threatens the rise of interest rates.
In our latest industry report, Gerald Edelman Partners, Sonal Shah, Richard Staunton, Hiten Patel, and Deval Patel, deconstruct the Property Services sector to provide a full overview and projection of the coming months.
Throughout the report, you’ll find an analysis of the housing market, the commercial sector, and property services as a whole. Also, our authors take a look into the M&A landscape and momentum and share closing insights into the future of the sector.
Key takeaways from this month’s report include:
- Lower output and fewer enquiries from the pandemic reduced industry revenue by 23%.
- According to Zoopla, the total value of Britain’s homes hit £9.2 trillion this summer, with the combined value of Britain’s 28.6 million residential homes increasing by £550 billion in the past year alone.
- The UK’s property price growth slowed marginally last month as the stamp duty holiday came to an end, though October still provided the highest average UK property price on record at £267,587.
- Due to the increasing pressure of inflation, there is heavy anticipation of a rise of interest rates from the Bank of England – traders in money markets expecting a move from 0.1% to 0.25%, with many expecting a bigger move by the end of 2021.
- There has been an 18% increase in the number of deals recorded from January to July 2021, in which commercial property investment volumes reached £31.4 billion in July, a 32% increase from the previous year.