LISTEN: MSCI’s head of alternatives has warned of institutions being priced out of the residential investment market.
Speaking to Estates Gazette following publication of the 2014 IPD annual residential property index, Mark Weedon warned that foreign investment is pushing up capital values as it looks for safer deposits, which is causing a disconnect to the rental markets in central London.
This is leading UK institutions to consider building their own residential properties with an eye on rental to combat falling yields.
Weedon warned that as the market in London becomes overpriced for-long term institutional investors and the wealthy, it could have a knock-on effect in the South East and other regions.
