North West property market remains stable despite uncertainty

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Ben Roberts, Director - Capital Markets, North West, Lambert Smith Hampton

Investor demand in the North West remains stable in spite of macro-economic uncertainty, according to figures released by Lambert Smith Hampton (‘LSH’). Property investment volumes in the North West for Q1 2017 demonstrate that there continues to be an appetite for good quality commercial assets outside of London and that concerns around the upcoming election are limited in the region.

The uncertainty has caused some vendors to postpone sales so there remains the problem that there is not enough property to meet investor demand. Despite some good deals in Q1, transactional activity in the North West was down 60 per cent year on year.

The North West saw total transactions across all sectors in the last quarter amount to £438m, with the most notable deals taking place in Manchester and Liverpool city centres – DTZIM’s purchase of The Printworks in Manchester for £108m and Royal London’s sale of The Royal Liver Building in Liverpool for £48m.

With demand for central Manchester stock being very competitive, investors are looking at other parts of the North West region for investment opportunities.

Ben Roberts, Director – Capital Markets, North West, Lambert Smith Hampton, said: “The concerns surrounding Brexit and the upcoming general election are limited, with investor interest in the North West enduring and in particular Manchester being a focus for many investors. Those opportunities that have been on the market have received strong interest which has started to encourage vendors to push on with sales. . As a result, we expect strong investor appetite over the next quarter with an increase in ‘off market’ deals as investors seek to invest.”