Our lives now revolve around our homes more than at any point in the past 250 years. In 2020, Covid-19 has accelerated a trend which is making our homes the centre of our lives once again with technology being the great enabler allowing us to satisfy our needs and wants in our homes.

Our Residential Forecasts 2021 will look to the future and offer valuable insight on:

  • UK house price and rental value forecasts for the next five years
  • Expected future housing starts and levels of transactions over the next half a decade
  • Which cities will witness the highest house price growth?
  • Will the Covid-19 pandemic trigger large-scale de-urbanisation?
  • What role is technology playing to satisfy our increasing needs and wants in our home?

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Nick Whitten our Head of UK Living Research discusses our latest forecasts in the video below.

 

 

For more information, please contact:

Christine Wong (REN06667)

M: +6012 908 6318

E: wong.christine@ap.jll.com

12 Nov 2020

JLL Osaka’s market report summarizes on the latest trends in the Osaka real estate market with focus on the office leasing market for Osaka Grade A offices and the commercial real estate investment market.

With vacancy rate below 1%, Osaka office market is witnessing sharp rise in rents. A series of upcoming events that will support economic growth such as the World Expo and prospective IR development is setting up for further office demands. Large new supplies from 2022 will present excellent opportunities for office relocation. The market is likely to favour the landlords for the foreseeable future.

Although Osaka office market currently has very little vacancy, there are several projects that warrant attention. This report offers a map of key new office development projects, with insight on the outlook of office leasing and investment markets.

Download the report today to further understand the real estate strategy and investment activities, backed by latest market trends and investment market topics

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +603 2260 0700  

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29 Apr 2020

The UK’s seven largest regional economies are hugely important to the prosperity of the UK and this has been demonstrated in JLL’s most recent research. The city centre residential markets within these regions are all thriving and showing numerous signs of positive growth.

The GDP of these big seven regional UK cities account for 17.5% of the entire nation’s GDP and the average GDP per capita is £32,500 p.a., 6.6% above the UK average. Furthermore, the UK 2070 Commission, chaired by Lord Kerslake, has set out seven national priorities to pump prime these regional economies. Action plans include accelerating devolution and encouraging the creation of major specialist regional employment hubs.

JLL has identified existing business strengths in each of the major regional cities. Download the report to read on the impacts of these regional UK cities and how their economies will drive UK’s future growth.

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +603 2260 0700.

 

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27 Mar 2020

Understanding the differences between property markets in the US, Europe and Asia Pacific is vital. So is understanding different countries’ sales processes and tax systems. That’s where we can help.

International property investment is not just about buying bricks and mortar; it can be about finding a home or making your money grow.

Choosing a property is only the beginning. We can also advise you about financing, legal documents, furnishing packages, and even find you a tenant.

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18 Mar 2020

JLL’s latest research suggests that 2020 will be a year of recovery for the Prime Central London sales market.

The Prime Central London sales market picked up at the end of 2019 as the General Election result injected positivity and a more certain outlook. Looking forward, the rise in turnover witnessed in Q4 2019 should follow into Q1 this year, with a stronger rally in transactions as more buyers and sellers return to a more liberated market.

The Prime Central London lettings market is facing an acute shortage of properties to let, which has led to the highest rate of annual rental growth for over seven years. 2020 could be a year of mixed fortunes for the lettings market. Greater political certainty is likely to bolster rental demand. Nevertheless, the improved performance of the sales market may draw away some lettings demand.

Download the report today to gain a comprehensive insights on the real estate in Q4 and on what will be upcoming this year.

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +603 2260 0700

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18 Mar 2020

Research-based insight from JLL experts following the Budget 2020.

Overall reaction - Jon Neale, Head of UK Research:

The Government is beginning to demonstrate a co-ordinated approach to a potential Coronavirus shock, with the Bank of England announcing a 50 bp base rate cut to 0.25% to support the economy. The rate cut – and resulting falls in risk-free rates – will undoubtedly give space for prime yields to fall further.

While the Budget may not be as dramatic as some in government will have hoped, given the more pressing priorities around constraining and dealing with a Coronavirus outbreak, it demonstrates a clear commitment to supporting business as the UK deals with its effects. This represents an inflexion point in UK government policy and Conservative party strategies. 

Firstly, it signals a final end to austerity, with the government now prepared to accept a rising rather than net borrowing requirement. It is now clearly on a path of borrowing and investing.

Secondly, it demonstrates the start of a shift of its priorities for investment and its attitudes towards tax cuts, which reflect the shifting nature of the party’s voters. Investment will be refocussed towards the North and Midlands, particularly in areas such as infrastructure and public R&D spend. Tax cuts, meanwhile, are likely to be tilted towards lower-earning groups. The message to our industry is clear: while London will continue to flourish given its inherent strengths, the opportunities in the rest of the country are likely to multiply.

The scale of these shifts, at least initially, should not be exaggerated, but they are likely to be the start of a more profound trend in the longer term – even if plans for this year are sent awry by a potential pandemic. There are risks to this approach – London remains the nation’s economic hub and desperately needs projects such as Crossrail 2.

Meanwhile, the government seems less keen to address other, more fundamental and long-term problems – such as the ballooning social care needs of an ageing population.

 

Business Rates – Tim Beattie, Head of UK Rating

Get Transition Sorted:

The Chancellor announced a wide ranging and fundamental review of business rates with the objective of reducing the overall burden on businesses, improving the current business rates system and considering more fundamental changes in the medium-to-long term.

“Whilst we welcome the government’s announcement that it intends to undertake a consultation into major reform of the business rates system and take encouragement from the objectives stated in the review, the government needs to ensure it doesn’t just repeat other recent consultations which have all led to small, iterative changes (the “sticking plaster” approach) rather than meaningful ones and to deliver them quickly.

“The retail sector has been at the forefront of the call for more radical change and in particular have coalesced around the idea that the government needs to remove downward transition at the next revaluation and we therefore take further encouragement from the fact that the review is to focus on this area from April 2021 and we therefore implore the Chancellor to “get transition sorted”

“The abolition of rates for all retail, leisure and hospitality premises with a rateable value less than £51,000 for 2020/21 is also welcome news but many won’t benefit from this measure as they don’t meet the qualifying criteria.”

 

Sustainability – Sophie Walker, UK Head of Sustainability:

"Today’s announcement is certainly a step in the right direction, particularly with regard to addressing social and regional inequality, but in no way can we claim that the environment is at the heart of the Government’s economic planning. Increasing research and development investment is of course commendable, but without clear subsequent support in the upcoming National Infrastructure Strategy, we still risk missing our net zero carbon goal. We stand at a critical crossroads, where the Government needs to act to ensure the Chancellor’s words aren’t simply more hot air. We simply can’t afford to look hypocritical as we seek to corral global leaders to deliver in the run up to COP26."

 

Residential - Nick Whitten, Head of UK Living Research:

“Today’s Budget announcement to provide additional infrastructure funding is a welcome step in the right direction to enable new housing development. A lack of social infrastructure, such as sufficient schools, GP surgeries, roads and better public transport connections, is often cited as the blocker for new housing developments making it through the planning system. This fund should be the key to unlocking the door to building thousands of new homes across the UK. The additional funding for the Affordable Homes Programme is particularly welcome as part of the levelling up agenda and providing homes for those who need the most housing support.”

 “The change in the rate of Stamp Duty for international investors was anticipated as part of the Government’s priority to ‘level up’ the distribution of wealth in the UK. However, it is vital to strike an appropriate balance in meeting this priority and enabling international investment which currently plays such a crucial role in unlocking the development of thousands of new homes in London and the UK’s major regional cities. We welcome the delayed introduction until April 2021 to allow developers to explore options to adjust their delivery models. But time will tell what the long-term impact of the increase is, and whether it will threaten the future attractiveness of the UK and the viability of some housing schemes already in the pipeline.”

 

Northern investment – Stephen Hogg, Head of North West:

“2019’s General Election saw the Conservatives win a sweep of former Labour strongholds in the North of England, and we welcome the Government’s commitment to repaying voter trust by increasing spend in the regions.

“The Chancellor’s announcement of £600bn of capital investment over the next five years to ‘upgrade, improve and enhance’ Britain is positive news for strategic regional infrastructure projects, such as the upgrading of Northern rail routes and additional investment into HS2. This boost will enable key regional hubs such as Manchester and Liverpool to benefit from increased growth – minimising economic inequality in relation to the South East, and allowing cities across the North to unlock potential and productivity. Crucially, investment in our regional public transport systems will also support climate crisis action plans such as Mayor Andy Burnham’s Zero Net Carbon 2038 targets for Manchester – particularly in light of the Chancellor’s commitment to investing £1bn in green transport solutions across the UK.

“Lastly, the North West’s night-time economy is expanding rapidly, and so the Chancellor’s decision to abolish business rates for the next year for smaller companies within this sector will allow it to further diversify and flourish.”  

 

Ian Cornock – Lead Director, Midlands Region:

“The Chancellor’s willingness to diverge from the traditional ‘Green Book’ rules for public spending, which have an inbuilt bias to the South East, should enable the funding to allow the growth of urban transport in Birmingham and the wider West Midlands to continue apace, with the extension of the metro network towards the east of the city and the airport creating a new corridor for investment. 

“This, along with the proposed re-opening of local railway stations to the south of the city and in the Black Country, will help support the Mayor’s plans to deliver thousands of new homes on brownfield sites, with a £400m boost from the chancellor to ambitious mayors like Andy Street to help get this done.

“Birmingham’s commitment to tackling climate change with a £1bn investment in a sustainable and inclusive green transport network is to be welcomed. A traffic-free city centre and reallocated road space at the heart of its recently published transport plan – is the way to go for cities looking to compete on the world stage in the years to come. Businesses and residents alike are recognising the benefits – and being able to get to and from the 2022 Commonwealth Games venues via fast, cost-effective public transport is going to help create a lasting positive impression for visitors to the city, too.”

 

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +603 2260 0700

 

To view the latest residential properties in London and Manchester, click here

13 Mar 2020

After a year of continued political uncertainty and a general election resulting in Boris Johnson being elected Prime Minister, a Brexit deal remains at the top of the political agenda, but it’s not the only theme that will influence the UK real estate market in 2020.  

 

Here are forecasts and predictions for the year ahead, to understand the complete picture for each real estate sector and broader industry themes including:

• Brexit, the future trade relationship with the EU and the global economy.

• Climate change and its impact on real estate

• Supply and demand for the Central London and regional office markets

• PropTech and its continued growth

• Health & wellbeing in the workplace

• Build-to-Rent and its place in the housing market

• The emerging life sciences market

 

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +603 2260 0700

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18 Feb 2020

The greater certainty for the UK economy following the Conservatives’ resounding General Election win should lead to notable increases in house prices, transactions and housing starts across all regions of the UK.

 

The outlook for the UK property markets is more positive than it's been since before the 2016 EU referendum.

Last month's general election secured a stable Conservative majority for the next five years, bringing an end to the uncertainty that's characterized the UK economy for the last three years and restoring the confidence of investors.

With no further delays anticipated for Britain's departure from the European Union on January 31, 2020 is expected to be a year of gradual recovery as investors and businesses adjust to the new landscape.

This is set to accelerate from the end of the year as greater economic and political certainty instill.

Increases in consumer spending, government investment and wage growth above inflation are set to drive up house prices and new build activity across all UK regions.

For overseas property buyers, now is the opportune time to invest in the recovering UK residential market to enjoy the greatest returns.

The British Pound has shown signs of strengthening following the election result, while the economic fundamentals such as employment and real wage growth will help to underpin confidence.

 

UK residential forecast

Research by JLL forecasts moderate growth in the housing markets in 2020, leading to more rapid growth in the following years.

Average house prices are predicted to grow by one percent per annum in 2020, rising to four percent by 2022.

Transaction levels are expected to steadily improve to more than 1.3 million per year, with new housing starts taking slightly longer to recover as some developers remain cautious at first.

The UK rental sector will also see steady growth in the medium term, fueled by the trend for city living and more families waiting until their 30s to have children, delaying the purchase of their first home.

JLL predicts rental growth of 2 to 2.5 percent per year for the UK as a whole.

London weathered the years of uncertainty better than predicted and is set for a resurgence of economic growth over the next five years.

An expanding tech hub and top seven global city for talent, London attracts professionals and students from the world over, with population growth forecast at 100,000 every year.

 This means demand for well-connected property in London will continue to outstrip supply, but ongoing urban regeneration and an increase in new build activity will provide plenty of attractive opportunities for investors.

 

Fundamental certainties shaping housing delivery

Against this political situation, JLL has identified the fundamental certainties which will shape housing delivery in the coming years.

These certainties sit alongside our positive housing market forecasts for the next five years.

 

Here are the key certainties:

1.) Housing will remain a key item on the political agenda. Supporting first time buyer will be maintained and help to by will remain in place until at least 2023. High demand of affordable housing will continue for 1.1m people on wait list.

 

2.) Fundamental population changes will occur. Parents are having children later in life which is delaying the desire to purchase family-sized homes and supporting the growth of renting. Old population creates the need to deliver more elderly-appropriate housing, predict 25% of UK population will be over 65 by 2030.

 

3.) Towns and cities will be the highest housing demand. There will be an additional 2.5m people living in UK’s urban area by 2024.

 

4.) London will remain at the world’s top class. London is ranked by JLL’s Cities Research team among the seven established world cities. The UK Capital is particularly strong for its growth in digital sectors and its ability to nurture talent, there are more high-ranking universities in London than any other city in the world.

 

5.) There will be ever more connection between living and technology. There are 25% Britons without multiple smart devices in their homes. The thirst for technology will keep growing that means homes will accommodate ever more automated devices.

 

6.) Climate and social awareness will keep accelerating. All new homes will need to be Net Zero Carbon by 2030.

 

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13 Jan 2020

Here are a few points highlighted in the report include: -

- 2.5 million additional people living in the UK’s urban areas by 2024, rising to 5 million over the next 15 years.

- Interest rates and mortgage rates will remain low despite increasing, providing notable support for the housing market.

- The medium-term outlook for the UK housing market is remarkably positive.

- London’s annual GDP growth of 2.3-2.5% pa during 2021-2024 will far outstrip other regions.

 

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +603 2260 0700

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02 Dec 2019

Paddington has become a truly mixed use and diverse London destination. Office, retail, leisure and residential development have been interwoven around the canal system to create a vibrant, welcoming and exciting place to live, work and socialise. The highly connected transport hub, Paddington station, is being reconfigured to cater for the opening of the new Elizabeth Line (Crossrail), which will make Paddington even better connected to London’s three main employment hubs – the West End, the City and Canary Wharf.

 

Here are points highlighted in the report: -

- 158 new unit sales in Paddington in the year to Q2 2019

- New-build pricing in Paddington typically ranges between £1,400 and £1,800 psf.

- 530 units and 1,003 private units are in the construction and planning pipeline in Paddington

 

And if you have any questions on this research or anything else that you'd like us to clarify, please feel free to get in touch with us directly at +603 2260 0700

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25 Oct 2019