UK high street investment holds steady

New research from Savills indicates that the high street shop investment market is holding steady despite economic headwinds. 

Oxford Street

Institutional owners are strategically releasing assets, while private investors, especially in the sub-£3 mln (€3.5 mln) range, are fueling market activity.
The report highlights a stable, income-driven environment supported by improving occupancy rates and growing investor confidence. While Q2 2025 urban retail and high street transactions totaled £552.8 mln (€639.9 mln), a 22.3% decline against the ten-year quarterly average, total investment volumes for H1 2025 reached £1.4 bn (€1.6 bn). This figure represents a 27.6% increase over H1 2024 and a significant 106.5% rise compared to H2 2024, demonstrating a strong market rebound.
Pricing remains stable across most high street sub-sectors, outperforming retail warehouses and shopping centers in consistent demand. Investors are particularly interested in well-located properties with strong rental income that exceeds debt costs.
While defined benefit pension schemes continue to unwind, leading institutional owners to release assets, their desire to retain income-producing properties could potentially limit future supply, according to Savills. Despite some operational restructuring news, overall investor confidence in the high street sector remains strong.
James Stratton, director of UK Retail Investment at Savills, commented: “The market remains business as usual – neither racing ahead nor faltering. But it’s that very steadiness that’s appealing to income focused investors. Private capital is dominating lower-value transactions with a depth of buyer pool producing some competitive pricing. Larger scale and institutional players are beginning to pay more attention in larger trades, where pricing is typically less competitive. With a benchmark equivalent yield of around 6.5%, we expect modest capital value growth.”
Sam Arrowsmith, director of Research at Savills, added: “While transaction volumes are still shaped by stock availability rather than macroeconomic swings, the resilience of high street retail is clear. Investors are drawn to the sector’s income stability, and we’re now seeing signs of renewed competitiveness – particularly in the lower value brackets. The steady churn in deals under £3 mln is testament to the continued appeal of granular, accessible retail assets.”
Savills anticipates increased investment activity from private and high-net-worth individuals this fall, drawn to the high street market's strong occupancy, stable yields, and historical performance.