London, residential investment monitor, Q3 2014

Cluttons research team has released the residential investment monitor for Q3 2014.

While the pace of capital value growth continues to slow across the London, rental growth has yet to deliver the pace of uplift needed to drive a substantive improvement in average yields.

Given the close to historic low yields in the prime Central London market, domestic investors have ceded to the less yield sensitive overseas investors, opting to continue to focus on opportunities in zones 2 and 3 in the search for a viable and sustainable yield.

The lack of investment stock continues to frustrate new and established investors in the residential sector, driving ever smaller lot size purchases to build up portfolios.

That said, we have seen an increase in the turnover of fully let investment assets as well growing interest in major regeneration schemes across London offer potential stock at scale.