Fund management heavyweight Robert Houston has cut through creeping optimism in the industry, claiming property outside of London remains “horribly overvalued”.
He added: “Valuations across the board – predominantly for institutional portfolios – are 10% too high.”
Houston, former global chief executive of ING Real Estate Investment Management and founder of boutique investment manager St Bride’s, believes that because of this, forecasts of annual returns of 7-8% this year should be nearer 4-5%.
Houston made the comments at Estates Gazette’s Distressed Property Conference.
bridget.oconnell@estatesgazette.com
