Market trends

Major market trends:

Open all

Globalisation

Our investment and occupational markets are increasingly global. The UK’s political stability, sound legal and financial framework, time zone and the liquidity of its property markets make it an attractive home for international capital. London in particular offers some of the best employment opportunities, as well as great places to live and work, underpinning the growing globalisation of its workforce.

color x y actual prefix postfix
#00365f UK – 57% 57 57%
%
#54c2e5 Americas – 17% 17 17%
%
#fbb800 Rest of World – 26% 26 26%
%

Positive but moderate economic growth

Overall, economic fundamentals in the UK remain positive. Real wages and employment are forecast to continue to grow and inflation and interest rates are expected to remain low by historic standards. However, with markets becoming increasingly global there is a greater risk that external factors, including a vote for the UK to leave the European Union, will impact our markets, so we are mindful of the need to manage our business to mitigate these risks.

5.1%

UK unemployment rate versus Euro area of 10.3%

Source: Office for National Statistics, April 2016

Population growth and urbanisation

The UK population is expected to grow from 64.6 million in 2014 to 74.3 million by 2039. Much of the increase will be in its largest cities, notably London, underpinning demand for retail and office space, as well as infrastructure and housing. In London, investment in better transport, including new rail links and improved stations is under way. This is driving growth and regeneration across the capital.

8.7m

Greater London population forecast to grow by 1% per annum

Source: Oxford Economics

1.5m

extra people within 45 minutes of London with Crossrail from 2018

Source: Crossrail website

Transforming impact of technology

Technology continues to transform the way we work, shop and live. The internet has created a choice of delivery platforms, so people can shop in a manner which suits them. People are also able to work remotely; increasingly they see their working environment as a place to collaborate and network and this changes the type of office space they are looking for.

344,000

additional employees working for small firms

Source: Department for Business Innovation & Skills Business Population Estimates, 2015

Increasing consumer expectations

People’s expectations of where they work, shop and live are rising. They expect attractive, well-managed environments, modern facilities and a high standard of service. They like places which are accessible and convenient and, increasingly, they expect leisure to be a part of their everyday lives.

24%

increase in UK F&B/leisure spend forecast between 2016 and 2021

Source: CACI

Focus on sustainable and ethical behaviours

People expect companies to have sound sustainability credentials, to adhere to a high standard of ethical behaviour and to ensure the wellbeing of their employees. This is starting to influence who we want to work for, the places we shop and live and the kind of developments local communities are prepared to accept. Reflecting this is a growing expectation that governments should use policy to promote sustainable and ethical practices.

80%

of people believe that companies can play a leading role in solving society’s problems while still making profits

Source: Edelman 2016 Trust Barometer

195

countries agreed to keep global warming below 2˚C, pursuing efforts to limit it to 1.5˚C

Source: United Nations Framework Convention on Climate Change, COP 21 Paris 2015