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UK Commercial Market Outlook January 2022 | Carter Jonas
Kurt Richards, partner at Carter Jonas (former associate director at Turley & Co), UK commercial and economic outlook for January 2022 follows.
Omicron did not prove the adversary that many had feared and does not appear to have dampened investor appetite. Large swathes of the industrial sector, from large distribution warehouses, to multi-let industrial estates and last mile delivery units, will remain in high demand in 2022.
- Annual CPI inflation rose to 5.4% in December 2021, its highest rate in almost 30 years.
- At its December 2021 meeting, the Bank of England raised interest rates from the first time since March 2020, moving from 0.10% to 0.25%.
- Unemployment peaked at 5.2% during the pandemic and has since fallen to 4.1% in September-November 2021.
- Property investment volumes recovered in 2021, reaching more that £58 billion, up by nearly a quarter on the 2020 figure, and the highest level since 2018.
- Between February and August 2020, that all-property equivalent yield moved upwards by 33 basis points, peaking at 6.3%. It have since seen a downward shift to 5.4% by December 2021.
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