Delight on one hand and despair on the other, the feeling towards property in London, compared to many of the UK regions, presents a stark dichotomy.
So when is it all going to change?
As we move into the second quarter of the year, Estates Gazette gauged sentiment in the industry through three people with their fingers firmly on the pulse: Simon Rubinsohn, chief economist at RICS; Phil Tily, managing director at IPD; and Nick Symons, a partner at MMX Retail.
Their views are not very optimistic, but they do see room for some positive change, despite the challenges.
The retail sector is adapting to a changed environment, says Symons. “At the low point in 2012, retailers understood what was going on. Now I think they’re beginning to move forward again with something of an air of optimism. At least they’re putting structures in place to get to grips with the situation.”
Meanwhile, Tily talks of a “south/rest-of-the-country divide”.
“There’s less of a regional variation in the manufacturing side of the industrial market – which is linked with the challenges across the eurozone – than there is in the office market. In offices you get significant write-downs outside the South East, but you also get negative rates of return. That’s a worry because London is performing exceptionally well. London is profiting to the detriment of that South East market,” he says.
Finally, Rubinsohn offers hope for a rosier year ahead compared to 2012: “I don’t think the conditions are in place for a worse outcome.”
rebecca.kent@estatesgazette.com
