Commercial Real Estate Market Review
Our latest view on the outlook for the UK economy and commercial property market.
- In response to evidence of community transmission of the Omicron variant, the UK government has reintroduced measures targeted at reducing the rate of infection. The ‘Plan B’ measures include mandatory face coverings and vaccine certificates for indoor venues, as well as advice to work from home where possible, coming into effect between 10th and 15th December.
- In October 2021, the ONS estimates that GDP grew by 0.1% and remains 0.5% below the pre-pandemic level of February 2020. Service output grew by 0.4%, now reaching its pre-pandemic level. Alongside this, production output decreased 0.6% in October 2021, with electricity and gas dropping by 2.9%, while construction decreased by 1.8%.
- CPI inflation increased by 4.2% in the year to October 2021, up on the 3.1% in September and the highest figure since 2011. The rise in the energy price cap caused 0.7 percentage points of the increases, while transport, restaurants and hotels provided additional upward momentum and most other sectors also experienced price growth. The latest figure exceeded the BoE 3.9% expectation and means that the inflation is now double the BoE’s 2.0% target.