Investment activity in Q1 2026 reached £477m, marking the strongest start to the year since 2022. Volumes were boosted by three transactions in excess of £50m, led by Bank of New York Mellon’s £114m owner occupier acquisition of 4 Angel Square, Manchester. Melford Capital bought its third regional office in three years, adding Waverley Gate, Edinburgh for £78m to its portfolio alongside EQ, Bristol and 101 Embankment, Manchester.
Appetite for prime, centrally located assets with secure income remains resilient in markets where supply and demand imbalances are the most acute. This continues to place upward pressure on rents. Our April Data Bite explored supply constraints at a city level, highlighting that future development pipelines across all Big Nine cities are well below historic delivery levels. This includes traditionally strong regional development markets such as Manchester, Birmingham and Glasgow.
Looking ahead, heightened global headwinds are expected to push inflation higher and keep it elevated, a view underpinned by the Bank of England’s recent decision to postpone anticipated interest rate cuts. As a result, borrowing costs are likely to stay higher for longer, which may continue to deter debt reliant investors. This is expected to weigh on transaction volumes in the near term, particularly for larger, leveraged acquisitions.