Deep Dive: Property Is Facing A 'recalibration' In Light Of Higher Interest Rates

Valeria Martinez
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• 5 min read

The UK property market is going through a “recalibration” during the higher interest rate environment, but experts told Investment Week this may represent a buying opportunity, thanks to “attractive” valuations.

Simon Marx, head of research at Lothbury Investment Management, said the UK real estate market was at a "critical juncture", emerging from the global pandemic "only to hit upon the twin challenges" of a high inflationary environment and the rapid re-setting of interest rates. While the economy has nonetheless shown some signs of resilience in recent months, he argued challenges are mounting since inflationary pressures remain high in the UK. This looked unlikely to subside for at least a year, as Marx said his outlook was for interest rates to remain "elevated and volatile" for the ne...

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