More than four in five (82%) industry professionals in the real estate, private equity and infrastructure sectors are actively focused on making new investments in the UK during 2020, according to new research conducted by Chatham Financial a global independent financial risk advisory and technology firm.
- Over two thirds expect transaction volumes to increase in 2020 when compared with 2019
- Only 7% felt that transaction volumes would decrease
- An unfavourable trade deal with the EU would be the biggest risk to UK investment appetite
This was mirrored by a strong belief (71%) that transaction volumes will increase in 2020 when compared with 2019 while just 7% felt that transaction volumes would decrease. One in five (22%) respondents felt that transaction volumes would remain the same.
The survey was conducted after speakers from NatWest Markets and Pantheon Macroeconomics provided perspectives on 2020 economic outlook during the 30 January 2020 Chatham client event.
The research also highlighted the biggest risks to investment decisions with the majority of respondents citing an unfavourable trade deal between the UK and EU, followed closely by a global economic downturn. More than a third (35%) believe currency volatility / sterling weakness would be a major risk factor. By comparison, 47% of those surveyed felt the availability of debt finance was a major concern and a quarter (24%) highlighted interest rate volatility.
Jackie Bowie, Managing Director, Real Estate & Co-Head of Europe at Chatham Financial, said: “It’s really encouraging to see a high level of confidence in the UK economy after several years of uncertainty. The key question is whether these sentiments and intentions will translate into a more sustained investment drive across the industry.”
Chatham Financial, the largest global independent financial risk management advisory and technology firm which advocates transparency in financial markets, provides clients with impartial advice on how to get the best structure, including price, terms, etc., for the most suitable product when hedging financial risks.
|What are the top three risks to your investment appetite for the UK?|
|An unfavourable trade deal with the EU||65%|
|Global economic slowdown||62%|
|Availability of debt finance||47%|
|Currency volatility / sterling weakness||35%|
|Interest rate volatility||24%|
Source: Chatham Financial (January 2020)