UK Investment Transactions

The report highlights the increased role of private investors in the market, especially in the second half of the year when interest rates were dalling rapidly. In all, private property companies were involved in around £13.3 billion ($19 billion) of transactions in 2001, investing a net £2.2 billion ($3.1 billion) into the market.

Retail was the favourite sector for the private investors in 2001, with total purchases of £3.5 billion ($5 billion), over half of which was in shopping centres. In contrast, institutional investors were net disinvestors from property, although they still accounted for more than £10 billion ($14.3 billion) of business.

Ezra Nahome, National Head of Investment at Lambert Smith Hampton said: '2001 was the year for private equity. As the funds addressed the task of re-balancing their portfolios, concentrating on more predictable income streams, private investors became more active in the market, capitalising on low interest rates.'