Well it’s not surprising with 1 in 7 UK high street shops stood empty, the bad news for retailers is experts in the sector are predicting further closures as more consumers switch to online retailers. Last year the number of empty shops started to flatten out with just less than 15% or around 50,000 vacant commercial retail properties. This was not helped by a large number of high profile retailers going into administration. Yet again it is the high streets in the south that are bucking the trend strengthening the north south divide. Some of the secondary retail areas seem to be locked in a slow cycle of decline with the least attractive high streets with the lowest foot falls perhaps consigned to history. It is simple supply and demand with online sales doubling over the last decade. There is simply not the demand for retail premises that there has been historically. So what will happen to these empty properties? Some will be demolished and but others may be converted to other use classes, some lend themselves to services offices and others residential use. Clever property owners will look at their portfolio of commercial investment properties and look at conversion of the upper parts to maximise their rental income.
Renovation specialists Derbyshire
February 5, 2012
Derbyshire is very fortunate to benefit from an enviable selection of period property, Derby particularly boasts some of the best examples of Georgian period property outside of Bath and London. There are some very good examples in the various market and small towns of Ashbourne, Matlock, Bakewell and Melbourne. When restoring a period property it is all about the details, these are the things that the untrained eye will miss but can make or break the overall quality of a period property renovation. There is little point getting the sash windows mouldings and glazing proportions to match perfectly and then fitting the wrongs style or period of window furniture or hardware. Even with the brick work it’s not just the correct type of brick and mortar it’s the bond and pointing. There is no point in laying a perfect row of the correct bricks in stretchers with 15mm weather strike pointing. When it should be brushed 5mm English bond, so ask yourself a question before you hand over your period property or renovation project to a building contractor are they really period property experts? You will only have one chance to get your renovation project right and leave a wonderful legacy for future generations to enjoy. So take the time to make sure you have the right renovation specialists managing your period property renovations.
Buy to let booming as banks back landlords again
February 3, 2012
Although young home owners are struggling to obtain suitable mortgage finance experienced buy to let landlords are enjoying an ever increasing pool of mortgage capital. It’s all about the banks mitigating risk, why lend to young first time buyers with a limited track record when you could lend at a lower gearing to experienced investors with a proven track record and other security in the back ground? There is said to be a hundred more deals on offer than there was a year ago and the increased competition is leading to better deals. In the last year the average buy to let rate has dropped from 5% to less that 4.8% which on typical buy to let margins has a great affect on landlord’s bottom line. This is like a self fulfilling prophecy as first time buyers struggle to get mortgage funding they are forced to rent and that’s another tenant for the buy to let landlords.
Commercial landlord’s dismay at governments “U” turn on pre-packs
February 2, 2012
Many commercial landlords feel that pre-packs are often used as nothing more than an accounting procedure to avoid paying thousands of pounds on lease agreements. The original plan was to give creditors three days to review information from the insolvency practitioners prior to the pre-pack going ahead. Many in the commercial property world had expressed concerns that three days was insufficient and a longer period was required. This proposal for a notification to creditors prior to the pre-pack has now been completely abandoned. It is the “Phoenix pre-packs”, that are seen by many in the property industry to be the sharpest practice, when a company is cut up and the most profitable sections purchased out of administration by a pre-connected party.
House sales halved from 2007
January 30, 2012
Things are improving slightly up from the record lows of 2009 when only 848,000 properties changed hands. The three most restraining factors on transaction volumes and house prices are the usual suspects a lack of suitable mortgage finance, unemployment and consumer confidence. Both new build and normal sales are subdued because there are limited new houses and a lack of confidence that existing home owners will achieve the sale figures they want. The council of mortgage lenders is predicting further falls in lending this year which ultimately will lead to further falls in transaction volumes.
Move or improve with a home extension
January 29, 2012
With spring just around the corner and Christmas becoming a distant memory, is now the time to make a decision on if you should move or improve your home. With the continuing mortgage drought and challenging housing market conditions many are choosing to stay put. So how can you improve your current home? Well many home owners traditionally have opted for loft conversions. With ever increasing thermal efficiency to buildings through tighter building regulations often a home extension offers better value. This is a good time of year to start planning your project and applying for the relative permissions. Usually a planning application is required for larger home extensions. All new house extensions require building regulation applications to check they comply with building regulations. So don’t let another year slip by get your home extension project planned for a successful home extension build this summer.
Top ten tips for building a home extension
January 28, 2012
1. Make sure you know how you want to use the space and design a home extension that fits your needs and your type of property.
2. Chose a design and build company or an architect that specialise in the type of home extension that you are planning.
3. Do not let permitted development rights effect your decisions too much, you could save the planning application fee only to find out that you cannot fit that extra sofa in.
4. Make sure you pay attention to the detail, a well planned project is easier, quicker and cheaper to build than one that needs designing as it is built.
5. When choosing your builder ask to see other examples of their work, do they have references? Do they work with others within the property and construction industry?
6. Make sure you match things like roof tiles, brick types and bonds so that your home extension blends in with the original building.
7. Be prepared for the disruption, there will be skips, dust and delivery wagons, can you plan things so your contractors can have their own access or have the area fenced off? Ask your builder to provide a site toilet so they do not need to walk through your house.
8. Try and get as much of the project controlled and contracted to a main contractor so if there are any issues there is a clearly responsible person.
9. If you chose bespoke lintels or unusual design features be aware they may add time to the project as well as costs.
10. Remember to enjoy your project, chose a contractor who is genuinely excited about your project and does not see it as just another job.
Commercial property set to recover in second half of 2012
January 27, 2012
Commercial property forecasters are predicting a revival in the commercial property sector later this year. They cite the Eurozone crisis as a delay to many companies expansion plans particularly in the London commercial property market. Many boards and directors are positive about signing new leases but are holding off. These decisions cannot be delayed indefinitely and analysts believe that many have held off expansion plans for as long as possible. Companies that are performing well are looking to be well placed for the recovery and will want properties in place to support their business plans. Some London post codes are seeing annual returns for commercial property of over eleven percent.
Commercial property transaction volumes drop by over 6% from 2010 to 2011
January 25, 2012
The values of commercial property transactions have dropped from just short of 36 billion to just less than 33 and a half billion. In 2011 there were just over 1700 sold mainly by banks or the customers of banks under pressure to stay within their facility agreements. University research estimates that a quarter of all commercial property has 100% outstanding property loans. They estimate that a further 35% are at 70% or more, this mean that 60% of all commercial property will not be re-financeable at the end of their facility terms. This has the knock on effect that banks cannot clear property backed loans off their balance sheets. So they have little or no appetite for speculative property development and new commercial property loans.
Buy to let mortgages just got easier
January 23, 2012
Increased competition in the buy to let mortgage arena shows with looser lending criteria. The Yorkshire building society has expanded its range of mortgage products to include properties with a value of less than a £100,000 and for applicants with incomes of £20,000 rather than the £35,000 previous figure. Although house prices have stagnated the growth in rent inflation has encouraged both landlords and banks to place their funds back into the property sector. The Co-operative bank has also pledged to increase funds to the buy to let mortgage sector by another third. All this has lead to triple the number of buy to let mortgage products available to landlords.
