Member Article

North West property transactions drop 60% in Q1 but demand remains resilient

The impending election and ongoing jitters in the UK economy have seemingly had little impact on investor interest in the North West’s property market, although completed transactions marked a 60% fall in Q1.

Transactions in Q1 of 2017 hit £438m with high-profile deals such as The Printworks in Manchester, which sold for £108m, and Royal London’s £48m sale of The Royal Liver Building in Liverpool boosting sales in the region, according to Lambert Smith Hampton (LSH).

However, the numbers represent a 60% year-on-year fall in transactional activity, with some vendors postponing sales as the uncertainty continues.

LSH said the fall can be attributed to their simply being a shortfall in stock, meaning there is not enough property around to meet demand, with central Manchester being particularly competitive.

It said that there remained a strong appetite for quality commercial assets outside of the London market, where prices have stagnated somewhat since the referendum, and that investors were hunting for North West bargains outside of the metropolitan centres in the region.

Ben Roberts, Director of Capital Markets, North West, Lambert Smith Hampton, said: “The concerns surrounding Brexit and the upcoming general election are limited, with investor interest in the North West enduring and in particular Manchester being a focus for many investors.

“Those opportunities that have been on the market have received strong interest which has started to encourage vendors to push on with sales.

“As a result, we expect strong investor appetite over the next quarter with an increase in ‘off market’ deals as investors seek to invest.”