Businesses, including the care industry, can look forward to a period of increasing confidence entering 2018 according to the latest report by specialist business property adviser, Christie & Co.
In their Business Outlook 2018 report, Christie & Co identifies the sectors that benefitted from activity fuelled, in part, by the availability of finance and a surge of investors, many from outside the UK, looking for good opportunities and strong returns.
The continued uncertainty surrounding Brexit has made its impact across all sectors, but the UK has also welcomed a spike in tourism and a surge of foreign capital into the UK market. Asian investors particularly view the UK as an attractive investment opportunity thanks to the country’s stability and relatively low value of the Pound.
Looking forward, Christie & Co remains increasingly confident in its sectors. The Business Outlook 2018 report expects further consolidation as pressures on costs continue, but this will prompt a shift towards embracing change, as technology and innovation evolve alongside the UK’s strengthening economy.
Average prices remained economically positive throughout 2017 across almost every sector in which Christie & Co specialises, with care rising 6.1 per cent.
Richard Lunn, managing director – Care, at Christie & Co said: “Having achieved levels of activity across the sector on par with those achieved pre-recession, our healthcare business concluded the year remaining at the forefront of the marketplace with the highest number of transactions in several years.
“A surge of new development activity within the sector has driven improvement of the quality of estates and brought about a diversity of operators and investors seeking new opportunities, such as care villages and Extra Care Schemes to supplement care.
“We can expect further investment from global investors seeking yield security in a low-interest environment. While this is likely to be followed by a separation between property and operating companies, the shift could also lead to unprecedented levels of PropCo transactions.”