As we look forward in 2018 James Bailey predicts where the areas of growth will be in the property sector next year and says there is plenty of scope for optimism.
Are industrial investments a sound investment?
The industrial sector– supermarkets and distribution warehouses in particular – are becoming one of the fastest-growing sectors in property. However, this spike in demand has impacted on rental yields – many of which are owned by overseas investors.
Consider retail investment opportunities as an alternative to industrial. There is greater variety and flexibility in the retail sector, especially in the East Midlands region which could be taken advantage of in 2018.
What will the changes in stamp duty mean for the East Midlands?
The new stamp duty rules are expected to improve the sector’s buoyancy and fuel demand as properties valued up to £300,000 are now exempt from stamp duty.
Buyers can get much more for their money in Nottinghamshire and the wider region so we could see surge in people moving into the regions where it’s possible to secure a much better investment.
Should I invest refurbishing my current property portfolio?
We anticipate that investors will be prepared to spend more on their investment properties to secure longer term tenants.
As the gap between prime and secondary property hardens, investors will think more creatively about the space they have on offer and will be prepared to invest in refurbishments that will ensure the properties are full let.