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UK’s property investment market facing bleak future | 24 April 2012

Findings from DTZ Research have uncovered a bleak outlook for the UK’s property investment market, which shrunk by one per cent in 2011 – leaving it valued at £527 billion.

Although there may be growth in the market this year (2012), it will be marginal. DTZ’s ‘Money into Property’ report found. This was also confirmed by Tony McGough, DTZ’s global head of forecasting and strategy research.

“UK invested stock, with little rental growth or new development, is expected to rise by less than one per cent in 2012,” he explained on propertyweek.com.

Meanwhile, 2011’s results were partially attributed to the debt faced by the UK property market. This has left it lagging behind the rest of the world; with property investment across the globe as a whole actually growing by seven per cent. A large chunk of this was down to the Asian market, which contributed 13 per cent growth.

DTZ’s global head of research, Hans Vrensen, shared his thoughts on Britain’s monetary issues. He stated: “Falling debt in the UK confirms that this market has a bigger debt problem than most other European countries. However, it is also ahead of others in working through its legacy debt issues.”

The UK market’s drop in value could also be down to European investors feeling the pinch themselves; pulling out of potential UK investments due to their own economic woes. However although the outlook is a little bleak for 2012, throughout 2013, the market is set to grow by three per cent.

Investmenteurope.net also speculated that investors may have chosen stronger markets to invest in over the UK, citing France and Germany as key examples. The EU still remains one of the most attractive places for property investment – from non-bank lenders, at least, the website added. This could be another positive for Britain in the coming months.

Written by Deborah Bates on behalf of Qube Global Software

While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.

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