UK Housing Demand Increase As Seen By Regional Markets

Fitzhugh Decorators and companies engaged in painting and decorating are among those who will benefit in the increase of demand for houses in the United Kingdom.
During the first quarter of this year, reports have shown that occupies demand in the United Kingdom has significantly increased by 51 percent in comparison with the previous quarter. This report was revealed by the United Kingdom regional office market. The first quarter registered a notable highest level since the year 2007.

This dramatic growth has a combined 2.98 million square feet and is 49 percent above the quarterly averages in 5 years. This was according to the latest data that was taken from a very trusted real estate firm, Knight Frank.

Birmingham on the other hand saw that the performance in the second quarter with the taking of at least 500,000 square feet which was in turn boosted by larger transactions, the most significant for a couple of years now.

In the second quarter this year, the pre-letting activities also increased which impacted the new grade A availability which was significantly down by about 17 percent on a year on year basis. This percentage is collectively about 2.2 million square feet.

During the first half of 2015, it was reported that the investment market of about 2.09 billion pounds of assets from the regional offices changed hands which is the strongest so far of the sector since the second half 8 years ago. The main focus of the investment activities were Manchester, Bristol and Birmingham and accounted for more than half of the turnover in investments.

Bristol particularly saw some huge transactions which include the off market buy of Templeback by the Orchard Street Investment Management back in June 2015 for about 58 million pounds. The transaction reflected a net yield of about 5 percent. Another huge transaction was the acquisition of Aviva Investors of the 66 Queen Square for over 32 million pounds and had a net initial yield of about 5 percent.
Another factor that helped in the improvement of the pre-letting activity and also the high level of take up in different regional markets is the improved confidence among household occupiers.