Economic numbers are looking the best they have since 2010 and the collective mood of the property industry is significantly better than it was this time last year, but we’re not out of the woodwork yet, experts warned in an Estates Gazette Sentiment Survey round table.
The panellists, including retail guru Bill Grimsey, Countrywide UK boss Grenville Turner and Grosvenor head of research Graham Parry were discussing the results of the Q2 2013 survey, which indicated sentiment is up to a figure of 37 compared to –1.25 the same time last year.
“An improvement in sentiment is a good thing for the nation but it’s important also to keep our feet on the ground,” Grimsey commented.
“This rate of growth that we’re experiencing now, and the way we’re coming out of this recession is the slowest we’ve ever experienced. And I think it’s important to recognise that perhaps it won’t take off in quite the same way as, historically, emergence from recessions has before.”
The panellists discussed the need to address the nationwide housing shortage, with Turner putting the responsibility on house builders not just to sell existing stock, but build more.
The private rental sector, he predicted, would gain momentum.
“The strength of the rental market generally has meant that the economics of rental are becoming better understood, and I suspect that, over the next three to four years, you will start to see greater inroads being made in that particular sector.”
Grimsey urged for more joined up thinking between developers and local authorities.
“We have, whichever surveys you want to take, somewhere between 30,000 and 40,000 empty shop units in this country today and, fundamentally, we have too much retail space anyway. I just think the town centres need to get more populations inside them.”
Onto foreign investment, Parry said that provided the UK economy could avoid crises, particularly from the Eurozone, the regions could expect to benefit from overseas money.
“We should see money moving out from the most liquid large-scale markets in London to the South East in particular: its university towns, cathedral towns – areas which have their own affluent community and vibrant local economies that benefit from the linkage with London,” he said.
The round table was staged in association with Grosvenor.
rebecca.kent@estatesgazette.com
