UK Capital Markets Briefing Q4 2018

The UK Capital Markets report charts investment activity over the fourth quarter and 2018, alongside the latest market pricing in financial markets. 

Some of the key trends this quarter:

• Trading lower, but above average in 2018
• London insulated versus regions
• Yield compression, except for retail
• Secondary yield gap narrowed; could widen into 2019
• Pricing expectations diverging between buyer and sellers 

 “The ongoing uncertainty surrounding the UK’s exit from the EU is causing caution among some investors either seeking to sell or acquire assets. Baseline predictions suggest weak or negligible growth for several quarters in the event of a no-deal Brexit but the wide variation in forecasts underlines the uncertainty in the market.

“With a gap emerging between buyer and seller expectations on pricing amid continued uncertainty, deals are taking longer to close, with many investors unwilling to sell at lower prices or holding off from bringing assets to the market, despite there being active demand. Pricing is expected to stabilise with softening in some segments, as activity is expected to remain weak in the first half of this year although we could see a positive upswing if greater clarity emerges on Brexit.” Dr Nigel Almond, Head of Data Analytics - EMEA Research.
 

 Get in touch with Nigel Almond to discuss the findings.