The housing market is expected to be boosted by Boris Johnson’s decisive election victory, but property experts fear that it will not fully recover until Brexit is “well in the past”. House prices will rise by an average of 2% in 2020, more than double the 0.8% growth rate this year, after the Conservative majority gave homeowners a “window of certainty” that will release pent-up demand for the spring selling season, according to Rightmove (RMV). The property website, which measures the prices of 95% of property coming to market, said prices have been supported by demand outstripping supply. The number of properties put up for sale is down 8% on the previous year. Demand from buyers has remained almost level, with the number of sales agreed so far this year down 3% on 2018 despite the increased level of political uncertainty.
Capita (CPI) is launching an IT consultancy in an attempt to put itself in the same league as large, high-margin professional services firms such as Accenture and Cap Gemini. The company has started Capita Consulting, with plans to have 450 consultants next year. It wants to advise large organisations on their needs in the digital economy rather than, as hitherto, acting as a much lower-margin contractor. The plan has been unveiled by Jon Lewis, a turnaround specialist who has been Capita’s chief executive for the past two years. He pulled the firm back from the brink via a £700 million rescue rights issue to prevent its borrowings from spiralling out of control. The plan to get Capita consultants into client’s executive suites rather than its contractors taking orders from a client’s IT team is part of Mr Lewis’s aim to rebuild earnings and the share price.
Britain’s biggest commercial property landlord is reviewing its investment strategy as it comes under pressure from its exposure to shops, shopping centres and retail parks. The real estate division of Aberdeen Standard Investments (ASI) has £43 billion of assets under management, of which two thirds are in the UK. It is being shaken up by Neil Slater, who took over as global head of real estate at the asset manager six weeks ago, having previously run the Tokyo office. Mr Slater’s arrival has coincided with concerns about ASI’s £1.2 billion property fund, which has been hit by redemptions after fears over declining retail property valuations prompted its rival, M&G, to gate one of its property funds.
