08 Jan 2024 1 min read

UK real estate: Performance after repricing

By Bill Page

Could the UK be closer to the end of this process than other countries?


Bill Page, Head of Real Estate Research, considers in this note what may be next for British real estate after its recent bout of repricing.

He also examines the impact on near-term all-property performance of persistent upward pressure on yields, alongside the differing prospects for residentials, industrials and other sectors.

In summary:

  1. We remain cautious on near-term performance at the all-property level, given persistent upward pressure on yields, but some of this pressure has reduced as inflation has decelerated. UK real estate appears closer to the end of its re-pricing journey than in other geographies
  2. We expect potentially robust performance from residential sectors and believe this will support further institutional allocations. Parts of the industrial sector and other alternatives are attractive in our view
  3. Construction frictions are expected to limit supply risk and increase the scarcity value of premium product over the medium term. Frictions may also drive opportunities for institutional forward funding
  4. We believe real estate debt offers investors attractive return potential and can play an increasingly important role in overall real asset exposure

Click here to read the full article on UK real estate

Bill Page

Head of Real Estate Markets Research

Bill is LGIM Real Assets' Head of Real Estate Research. He has responsibility for the formation of house views and inputs into fund strategy. He has 20 years’ industry experience. He is a voting member of the Real Estate Investment Committee and actively contributes to the platform’s office and industrial strategy.

Bill joined LGIM Real Assets in October 2012, having spent seven years at JLL where he was EMEA Head of Office Market Research. Prior to JLL Bill worked at Estates Gazette Group. He chaired the British Council for Offices’ Research Committee between 2015 and 2018 and sits on the IPF Research Steering Group.

Bill graduated from Lancaster University with a first class degree in geography. He holds the IMC certificate and IPF Diploma.


Bill Page