The Press and Journal (Inverness, Highlands, and Islands)
UK commercial property stock reaches all-time high
The value of the UK’s commercial property stock reached an alltime high of £871billion in 2015.
Representing 10% of Britain’s net wealth, the figure comes in a new report from the Property Industry Alliance (PIA).
It is an 11% increase on the 2014 total and, according to PIA, was driven by higher rents as well as the prices investors were willing to pay for a given rent.
PIA chairman Bill Hughes said: “To put this in context, at £871billion, commercial property’s value is the equivalent of 40% of the value of the UK stock market and almost half the value of UK government gilts.”
The report also reveals that commercial property in the UK represents 13% of the built environment, which has a total value of around £6.5trillion.
And it says the sector contributed about £68billion to the UK economy last year, or 4.1% of the total value. Exposures to commercial property are said to have accounted for £178billion of UK insurance company and pension fund investments to support the nation’s savings
PIA says the commercial property industry directly employed nearly 1million people, or one in every 35 jobs in Britain.
Mr Hughes said: “This report demonstrates the property sector’s fundamental importance to the UK’s economy.
“However, we believe more could be done in partnership with the public sector to unlock the wider social, economic and environmental benefits of commercial property investment and development.
“We would like to see more connectivity in planning for property and infrastructure investment.”
“This report shows the sector’s importance”