IPD 2011:The vast majority of investors believe there is a place for residential in a balanced property portfolio, according to a straw poll of delegates at the IPD/IPF conference in Brighton.
Most delegates responded positively to residential yet only a handful did so when asked if they currently hold residential property.
The question was raised at a wide-ranging debate on the residential sector in which LaSalle Investment Management’s Robin Goodchild put the case for investing in the sector.
He argued that the asset class provides an attractive return potential, that demand for rental property is rising and that the supply shortage will continue.
Putting the case against residential, Schroders’ Mark Callender distinguished between housing need and housing demand, which is essentially driven by employment and could be entering a period of modest activity.
He also argued that the UK residential market is still fundamentally overpriced relative to earnings.
His conclusion was that now was not the time to invest in market-rent residential, but that there was broad acceptance of its value over the long-term.
bridget.oconnell@estatesgazette.com
