Lockdown restrictions rebuild question of 'widespread material uncertainties' in property sector

Cause of property OEIC suspensions last March

James Baxter-Derrington
Current and future restrictions may result in a resurgence of material uncertainty clauses

Current and future restrictions may result in a resurgence of material uncertainty clauses

Increased coronavirus restrictions across the UK could lead to a return of material valuation uncertainty across the country's property sector, which sparked the widespread suspension of open-ended property funds in 2020.

Speaking to Investment Week, David Wilson, real estate partner at EY UK & Ireland, which is a member of the Royal Institute of Chartered Surveyors (RICS) Material Valuation Uncertainty Leaders Forum, said that if the new restrictions were to "significantly affect viewings and overall transaction volumes" a return to uncertainty in property valuations "could be possible". Investors eye exit door as property funds prepare to reopen He clarified that not all sub-sectors within property will be negatively affected and suggested that logistics "will likely continue to thrive" but said the ...

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