The number of UK commercial property transactions has reached its highest level since the credit crunch, with 115,400 transactions in the last year*, a 6% jump from 108,500 in 2013/14, says EMW, the commercial law firm.
EMW says that data from HMRC shows that the number of transactions is up 24%, from a low of 92,900 in 2008/09, but still significantly below 2007/08 when there were 139,000 purchases.
There were 97,500 commercial property transactions in England last year, accounting for 85% of the UK total, this figure is also the highest since 2007/08 when there were 115,700, 83% of the UK total – a slight increase, suggesting that England’s dominance of the commercial property market is gradually increasing.
EMW explains that the relatively high yields on property when compared to other investments, continues to attract both UK and, increasingly, overseas investors.
Nick Marshall, Principal at EMW, continues: “Commercial property assets are proving increasingly attractive to investors looking for higher yields in an environment with record low interest rates and this is driving activity towards pre-credit crunch levels.”
“There has also been a surge of interest from overseas investors, with the UK offering investor friendly lease terms.”
“The relative shortage of vacant prime office space in central London is also making the market more attractive to investors.”
“Bank lending has also picked up which has led to more activity in the market – lenders are now happier to fund purchases at higher loan to value ratios. Without higher LTVs, many property investors were finding it hard to get the economics of their investments to work.”