The North West maintained its position as the most attractive region for real estate investment outside London and the South East in the first half of the year, according to research from global property advisor JLL.
JLL’s research showed the region’s property sector attracted £970m of investment in H1. Though exceeding its Midlands and Yorkshire counterparts, it was still 7% down on the 10-year average for the region.
Investment in the region’s real estate reflected the trend seen across the rest of the country as economic and political uncertainty deterred investors. The country as a whole saw a 25% dip in investment in the first six months of the year when compared to the 10-year average.
JLL’s research showed investment in the country’s property sector reached £16.2bn in H1, down on the 10-year average of £21.5bn but in line with figures seen in H1 2023. Although headline volumes remained a little subdued throughout the first half of the year, overall volumes including M&A, land and development investment increased 12% year-on-year to £22.6bn.
The data also shows international investors remaining active in the UK, accounting for 52% of the total in H1 and reaffirming confidence in the UK real estate market.
The living sector, which includes all segments of the residential market including student accommodation and retirement homes, maintained demand attracting the largest proportion of investment for the third quarter running.
JLL’s research showed it attracted £4.8bn in investment, accounting for a 30% share of the market.
Jonathan Wiedemann, Head of the North West at JLL, said: “It’s not been the easiest start to the year for those in the property sector, with a recession, high interest rates and an uncertain political backdrop making investment a tricky sell. It’s testament to the strength and attractiveness of the market in the North West that investment has held up better than others.
“The sector, and the North West more generally, is resilient. Stability in policy, proposed changes to the planning system to make building less burdensome and optimism that interest rates will continue to fall means many will be eyeing the second half of the year as an opportune time to investment. Those factors will, in turn, be crucial to driving the economic growth the new government is aiming for.”
