Summer heat buoys the Residential Market during Q3

Following a very broad geographical spread in Q2 2018, transactions in Q3 so far have mostly been concentrated in Greater London and Manchester. With more than £650m committed over Q3 to date and with the run up to the year end typically being very busy, things look positive for last year’s total of £2.4bn to easily be surpassed in 2018.

Whilst some have concerns regarding oversupply risks, there seem to be plenty of parties still keen to secure stock in Manchester as illustrated by Legal & General continuing its investment in the city with the forward purchase of one of Renaker’s towers at Deansgate. With many other deals in hand in Manchester and Liverpool, confidence in the North West is clearly being drawn from the successful letting of Build to Rent schemes owned by the likes of Hermes and Legal & General.

In London, Invesco continued its track record of being one of the most active market participants, sealing the forward funding of Ecoworld schemes at Barking and Kew. Realstar also added to its expanding portfolio buying Hyde’s New Cross scheme.

The sector continues to attract new participants with Cording, Amro and Palmer Capital all making announcements or funding raising in recent months.

We leave our key yields unchanged over the quarter reflecting the continued strength of pricing in this sector.

Jason Hardman

Jason Hardman

Executive Director

t: +44(0)20 7182 2802