The UK base rate was held at 5.25% this week following on from no change in policy rates by the ECB (4.0%) and the US Fed (5.5%). Governor Bailey issued a cautious statement dampening any expectation of an early cut in rates. Of course, a mild recession might change that.

Insolvency Service data showed that between July 1 and September 30 there were 6,208 registered company insolvencies across England and Wales, a 10% year-on-year increase. There has been a 46% increase in restaurant closures over the last 12 months (2,200) largely has been caused by high inflation and interest rates, and declining consumer demand. 

Supermarkets with a value of c. £180m are being marketed prior to year-end, including three assets from Lothbury Investment Management Limited.

Harbert Realty Services, together with student accommodation provider Abodus Living, has completed the £150m purchase of Starwood Capital Group and Round Hill Capital’s £150m Skyfall portfolio comprising 1,300 beds across the UK.

Swiss Life is selling Lady Bay Retail Park in Nottingham off a guide price of £18.6m, equating to a net initial yield of 8%.

Harrison Street and Apache Industrial have agreed a £100m refinancing with AIG for their 515-unit New York Square build-to-rent development in Leeds.

PGIM Real Estate, alongside Cornwall Pension Fund, has completed the forward acquisition of a single-family rental development in Camborne, Cornwall to provide 67 single-family homes.

The Nationwide Building Society House Price Index recorded a surprising 0.9% increase in October, up from 0.1% in September. Annually, prices are down 3.3% and 5.2% below the August 2022 peak. Market resilience is likely due to a lack of forced selling due to a strong job market, while mortgage arrears are at historically low levels.


Mark Charlton – Real Estate Research Consultant at Waypoint