The UK’s property investment sector continues to grow, as 2014 sees more than £65 billion of investment across the market.
A new report has revealed that real estate investment in the UK has risen to a new record level, surpassing the previous 2006 peak of £63bn and up 16% on 2013’s £55bn total. The news positions the UK as the world’s second largest commercial property market, accounting for 18% of all global transactions within the property sector.
The overall growth of UK property outside of London has been the driving force behind the figures, with more than £28bn of investment being made in regional Britain, a 70% increase on 2013. The variety of investment opportunities and high rental return that typify investments in the UK’s regions has seen purchasers look outside of the capital, with greater focus on the country’s undersupplied regions.
One of the most significant trends highlighted in the report has been the willingness of investors to turn to less traditional asset classes such as student accommodation. With high rental return and demand for student rooms increasing, these investments have moved into the mainstream, becoming diversification opportunities for investor funds. This has powered the growth that has seen these alternative asset classes become a 19% share of all UK property investment, a staggering increase from the 3% share accounted for in 2009.