AROUND THE SOUTH WEST AND SOUTH WALES WWW.PROPNEWS.CO.UK
Swindon and
market transactions fall to an all time low as a science, whilst the market is so difficult to predict
banks cannot or will not make mortgage in the face of the low volume of transactions, what
funding available and the consumer grapples a year to choose as the base for rental values for
Wiltshire
with the demise (possibly permanent) of cheap the 2010 Rating Revaluation. The Valuation
lending. Office's fallacious concept of 'Right First Time' will
Luckily, the commercial market has not been be dead in the water before 2010 kicks off, in my
hit to the same extent as the residential market view! And if that is not enough to distract you from
Andrew Kilpatrick
and most of us commercial agents are still in your summer holiday, don't forget that when you
Partner
business, unlike some of our less fortunate return you will have the delight of Energy
Thompsons
residential agency brethren. Despite the general Performance Certificates to look forward to, adding
Swindon
economic gloom and uncertainty, there are, luckily, yet more costs to property transactions just at a
still people out in the market wanting and willing to time when everyone is under cost pressures,
do deals. Whether those deals reach fruition can whether from the new fuel exercise duty increases,
depend on their ability to secure finance, which car tax increases, or empty property rates.
More than half way
remains challenging, particularly bank finance. If only the property world were more united we
through 2008 already
However, much of the excitement in Swindon would probably be out on the streets manning the
and what a year it is
from the proposed Modus extension of the Brunel barricades just in case Gordon Brown might be
turning out to be! Whilst there was talk of
Shopping Centre and much needed around to listen, assuming he is not too busy
clouds on the horizon and a possible economic
redevelopment of Swindon College site are still ringing unsuspecting members of the public at
slowdown, who would have thought that by
showing little signs of advancement, albeit 6am, or trying to spin away another tax increase!
midsummer, new house building would have
understandably in the circumstances. Ever get the feeling that the lights are on but
almost ceased across the country as housing
With valuation being more of a black art than there's no-one in?
Swansea Bay and
Bath and surrounds
Gloucestershire
Bridgend Philip Marshall
Managing Director
Rowland Jones
Crisp Cowley
Principal
Richard Crabb
Bath
Rowland Jones & Partners
Partner
Swansea
DTZ
As a commercial agent
Chletenham
What is happening in in 2008, you are unlikely
the south west Wales to have one of your best
property market? years (even those of us
The best I can say is lucky enough to be in
that it is a very confused Bath).
marketplace trying to come to terms with the Completing deals is hard work and many
sudden downturn in the housing market, a great glum faces will helpfully update you on the next Since agreeing to write this month's column I
deal of uncertainty in the banking sector, the gloomy story or rumour circulating. In reality, life have been thinking about what to focus on.
threat of inflation going to even higher levels and here in Bath is certainly much better than might be Ultimately, I cannot escape talking about the
the removal of empty rate relief. expected. Well-placed retail units, are attracting present market, just as anyone does when
As a result we are seeing a slowing of activity competition in many cases, and straightforward they get together, whether they are involved
and understandably caution in the level of offers more secondary sites, should find tenants if priced in property or not.
being put forward for the more speculative sensibly. The residential market is pretty transparent
properties and in the short term I see this trend We have recently seen competitive bidding and the severity of change is clear for all to see. No
continuing until a greater level of stability return to for a unit in The Podium Shopping Centre; one in doubt we have all seen Estate Agency branches
the market. In the industrial and office sector there New Bond Street and as well one in our tertiary close and what was once the default exit route for
remains a limited supply of quality buildings and "artisan quarter" of Walcot Street. Possibly we are some buildings and sites it is suddenly more
we continue to receive a good level of enquiries for helped by loss of the former Southgate Centre complicated.
the stock on our books. which still leaves us short on historical levels of However, this does open up fresh
In SA1 as I have previously indicated the retail floor space (although construction is rapidly opportunities with commercial development
Ethos building in now 80% occupied with some advancing on it's replacement), but there also becoming competitive again, depending upon
smaller units purchased for expansion by the seems to be a very positive attitude within the city the view taken on the strength of the commercial
existing owners are available for short term let and - perhaps bucking the trends seen in many other market. Certainly, various clients who have been
the other development in which we are involved towns and cities across the UK. bored with trying and failing to complete with a
Langdon House has in addition to the pre-sold Whilst the office market has undoubtedly frenzy residential interest (whether valid in planning
units now got enquiries on most of the available become more difficult, especially for space in terms or not) have become interested again and
units as companies recognise that once sold or let Georgian Buildings, there is no doubt, were you are genuinely active.
there will be virtually no available stock within SA1 lucky enough to be offering anything in excess of So far, the effect on commercial is dramatically
for up to two to three years as the next phase of 5,000 sq ft of modern open-plan office space in less compared with residential. There is clear
sites has yet to be brought forward for development. the city centre, that we would have a number of uncertainty and many applicant schedules are
Generally I believe that the underlying takers for you. shorter. However, remaining and fresh applicants
economy in the area remains relatively strong and Whether the market is suffering as a result of are very genuine and have a real need and desire
the majority of businesses well placed to weather the wider economy or not is a matter for speculation. to move. The purchase of property remains an
the downturn. The traditional quieter summer The trend to move from our traditional Georgian attractive option, but lease enquiries have definitely
period is now well and truly with us and we will office buildings in Bath is undoubtedly strong and increased and ultimate activity in terms of deals
need to wait until September to truly assess the the market is receptive to additional modern done is holding up.
economic climate and market in which we will space today. The latter may be a greater factor in I remember well working through the early
need to operate for the next 18 months to two the market. 1990's and without doubt these are again
years. It is a shame the development process is interesting times. The frequency of marketing
Whatever the circumstances we have been unable to react with the speed of the market, but meetings is increasing as void rates liabilities bite
here before and come through it and we will come then, a good agent will always be seeking a and as usual there is keen interest from everyone
through this. There is still business to be done and greater supply of something - whatever the market to see the state of the property market and general
we are positioning ourselves to carry it out. conditions. economy after the summer.
18 Property News August 2008
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