We all know that the flow of credit will be the beginning of the real road to recovery. Banks are not calling in the loans that are in default and are holding out for an upturn in many instances. However there is some movement and those transactions that are in the market and transacting are often with vendor financing attached. This loosening up of the market is translating its way to the recruitment market where there is increased demand across the professional disciplines. Where the few cash rich investors that are out there see buying opportunities, for similar reasons they also see hiring opportunities. Good people are in short supply in the best of times and that is remembered by those with an eye to the medium term.
There are also reasons to be optimistic on the hiring front with opportunistic investment funds being raised and the anticipation and evidence of professional teams being built as a result. While rental decline is still evident the few investment transactions that are taking place are setting realistic value expectations in the UK market, and to some extent the European market, for assets with long term income and strong multi-tenanted assets. Emerging European markets and development deals are still in limbo and for obvious reasons. Active recruitment echoes the trading market and therefore individuals involved in the buying, accounting and management professions are still seeing activity and finding some job security.
Without over playing the positive sentiment that is occurring in the market or being naïve to the probability that there will be significant bumps in the road ahead, there is what can be described as positive calm and that is conducive to doing business. With all of the participants reconciled to where we have got to and the banks beginning to look up and out into the market there is some reason for confidence. And from where we are sitting that is translating into activity, much to the relief of our candidate base.
By Timothy Rowe