UK real estate investors stayed cautiously positive in the second quarter of 2011 as prime property continued to capture interest, according to the latest Jones Lang LaSalle UK Investor Confidence survey. This is despite second quarter investment volumes falling 24%, following a stellar Q1 2011 performance, boosted by the £1.6 bn Trafford Centre transaction in Manchester.

Investors do not expect the current tight supply market conditions to change, JLL said, noting that 43% of respondents anticipate an excess of buyers over the next 12 months. However, investors appear to be more willing to look outside London. Only 56% expect their new activity to be in London and the South East compared with 69% a year ago.

'However, this is yet to be translated in to transactions as regional investment volumes are still relatively low,' said Robert Stassen, head of EMEA Capital Markets Research at JLL.