property trends seminar
28 march 2017
Leading property consultancy Bidwells hosted a Property Trends seminar in Cambridge in which a trio of experts gave their insight on the economy and property market and what the future may hold.
With Article 50 being exercised the day after the Bidwells event, one of the key messages from the seminar was that the Cambridge-London-Oxford Golden Triangle continues to experience strong growth and is well placed to weather the uncertainties of Brexit.
The seminar was held at the Moller Centre in Cambridge and focussed on the future economic and property market conditions which will affect the country both nationally and closer to home. Also included were the latest findings of the review of the Greater Cambridge Greater Peterborough Local Enterprise Partnership (GCGP) Strategic Economic Plan and its impact for public investment in the region.
Steve Mallen, Economist and Market Analyst opened the event and gave a full overview of the current economic issues and the property market trends.
Key themes included:
- The UK economy stalled in 2016 in the face of Brexit uncertainties but has now recovered with economic growth predictions now being revised upwards. In 2017, the UK economy is projected to grow by 2%, in line with the nation’s 30 year average and despite concerns over Brexit.
- The UK property market also paused last year with investment returns slowing and new investment and development projects put on ice. However, especially with the South and East, transaction volumes are now rising again and investment volumes are gradually rising.
- Inflationary pressures, driven by energy and food prices, will temper economic growth to a degree in 2017/18 and also dampen consumer expenditure.
- The investment returns on UK property are forecast to rise against a backdrop of reduced volatility and superior performance in comparison with the stock market and other investment options.
- Six of the top ten most productive cities in the UK in 2017 are projected to fall within the Golden Triangle and Eastern region. In order, productivity will be strongest in Cambridge, Oxford, Milton Keynes, Ipswich, Norwich and London.
- The Golden Triangle is especially well placed to take advantage of the rising digital economy with the Cambridge-Milton Keynes-Oxford Brain Belt growth corridor offering substantial commercial and property investment potential.
In commenting on the seminar proceedings, Steve Mallen stated:
Cambridge, the Golden Triangle and the rest of the UK held its breath last year because of Brexit. However, Brexit will take many years to resolve and you can’t hold your breath forever. The economic and property market fundamentals of both the Golden Triangle and the LEP area remain very strong with positive growth still much in evidence.