LSH: UK investment transactions Q3 2012
The average deal size increased by 45% this quarter, emphasising the two tier nature of the market. Investors continue to purchase trophy and prime assets in London, while regional investment activity remains muted, a report by Lambert Smith Hampton has found.
After increasing between Q1 and Q2, property investment volumes have risen again in the third quarter of the year, moving from £7.83bn to £8.22bn (figure 1). The all property transactional yield moved in by 42 basis points, from 6.96% to 6.55%.
Given the summer’s sporting distractions and low levels of economic sentiment, investment levels might have been expected to remain flat at best. In fact the number of deals done did fall by 28%, but the average deal size increased from £15.5m to £22.5m.