Commercial Real Estate Market Review
Our latest view on the outlook for the UK economy and commercial property market.
- The UK has emerged from the third set of national lockdowns. On 17th May, the second stage of the recovery roadmap was enacted in England, permitting indoor hospitality and leisure to resume operations once again. The postponed third stage of restriction easing in England and Wales – which dissolved the vast majority of social distancing measures – occurred on the 19th and 17th of July respectively, while Scotland maintained some restrictions including the 12pm curfew for hospitality venues until the 9th of August.
- Covid-19 vaccinations continue to be administered across the UK, with 40.8 million people having received full two doses as of 16th August. So far, it appears the vaccination effort is helping to keep hospitalisations and deaths low despite the significant resurgence in case numbers to levels comparable with December 2020.
- The ONS reported that GDP grew by 4.8% in Q2 2021. This came after a 1.6% contraction in the previous quarter as demand rebounded with the easing of restrictions. This was driven by a 7.3% increase in household consumption and a 6.1% increase in public spending, a significant increase from the 1.5% recorded in Q1.