MORNING NEWS: Resi to remain ‘the winner’ in 2025

Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of real estate-relevant headlines from the national papers. Players in the UK’s living sector believe it will remain “the winner” for attracting investment next year, despite facing challenging headwinds over the course of 2024. Construction cost inflation, interest rate volatility, an election and regulatory change made for an unpredictable year. We look back at the deals that defined BTR, student accommodation and other segments of the market, and what they tell us about likely activity in 2025. “Investor interest in the residential sector is heightening with continued recognition of the urgent need of new housing supply, coupled with the social impact that housing, such as discounted rental products and shared ownership, can deliver,” says Catherine Webster, chief executive of Thriving Investments. DWS says a “fragile” UK economy has nonetheless outperformed all other European markets for real estate investment this year. In an outlook paper, the asset manager said growth has been supported by a notable fall in inflation and two interest rate cuts, adding that the Labour government’s focus on public investment should promote economic recovery. “The UK has been by far Europe’s most active real estate investment market over 2024, despite volumes remaining well below average,” the team said. “Improved sentiment is a result of attractive pricing, a recovering economy and a more stable political environment.” And London has passed Paris to reclaim the number one spot as the most attractive European city for residential investors, according to Patrizia’s European Living Cities Index 2024. Zurich claimed third place, up from fourth in 2022, with Stockholm rising to seventh from ninth place in the ranking. There’s also news on Henry Boot’s latest bet on housebuilding; Legal & General buying homes from Birmingham City Council in Perry Barr; and the new head of CBRE’s Oxford office. All of the news from EG, plus a selection of headlines from the nationals: Resi to remain ‘the winner’ in real estate investmentHenry Boot to take full ownership of housebuilder StonebridgeLegacie secures £93.5m for Gateway scheme in LiverpoolL&G completes 487-home Perry Barr dealLondon edges out Paris to top European Living Cities Index 2024UK leads Europe for real estate investmentCBRE appoints new head of Oxford officeHarworth bags grant to create woodland on 230-acre Morpeth siteBank of England to keep rates steady as price pressures lingerUK house prices to grow by up to 3% in 2025, Halifax saysRent prices reach record high in EnglandShoe Zone blames tax rises in budget for decision to close some storesLand Securities’ latest shopping centre bet is not an obvious bargain (£)Pizza Express to open first US restaurant in Florida (£)