COMMENTARY 2008 / 2009

Marketing Report - 2008 to 2009

2008 will certainly be a year which will leave a sour taste in the mouth of many property agents, both commercial and residential. The slow down in the market has claimed a number of victims and prompted many firms to slimline their workforce. The limited availability of credit has seen many firms cut back significantly, higher loan rates, refusals to extend company overdraft facilities, requirements for at least 30% on property values to secure a mortgage are but a few hurdles companies are having to face.

Concerned mutterings of the ‘R’ word over the past few months have come to fruition and Gordon Brown has finally confirmed what everyone knew, that, we are now in a recession.

 Thus far, efforts to stimulate the economy and property market by the government and Bank of England have been in vein and the reluctance of the banks to play ball and pass on interest rate cuts has not helped matters.

The VAT cut to 15% from December 1st to stimulate spending, has been sneered at by consumers and many have expressed that it has not affected their spending decisions.

The empty gesture from Darling of 1 year rates relief on small commercial properties of ratable value less than £15,000 from April 2009 has not impressed agents, investors or developers and the empty rates will continue to accelerate demolition, delay development and stifle regeneration (Owen, 2008).

During 2008 Beesley Silas and Co. Ltd has seen the impact of the Credit crunch and recession on commercial property lettings and sales in the North West. Yields have moved out, the number of empty properties has increased throughout the North West and potential tenants are driving a harder bargain. However we continue to let, sell and manage properties within the Portfolio, taking a number of new instructions to market property, with a number of deals going through over the past 2 -3 months. We have further deals in the pipeline for December and through into the New Year.

Within the Greater Manchester area, we continue to assist and advise clients with the purchase of development sites and a proportion of our work involves advice on building development, the design process, procurement of building operations, obtaining tenants, fitting-out etc. We can also provide advice on such matters as planning approval and environmental appraisals.

We continue to get instructions for valuations on both commercial and residential property. They both have a wealth of valuation experience which is invaluable in such uncertain times.

Stuart has dealt with quite a few rating appeals during 2008 and some of these are for long-standing clients with both local and national property. Recently Stuart has dealt with appeals for properties in Wales, Scotland, Bristol and of course more locally in the North-West.

 In addition Stuart also has over 30 years experience with Compulsory Purchase Orders and Compensation cases and he continues to act on behalf of clients currently requiring professional advice and knowledge. Stuart has been able over the years to fine tune his negotiation skills, to assist his clients in achieving a favourable settlement.

Stuart continues to be instructed regarding schedules of dilapidation's and condition surveys. Again this year he has acted for both Landlords and Tenants regarding dilapidation's and condition, reporting and negotiating on behalf of both parties to achieve a fair outcome.

We have a wealth of experience and knowledge on the subject of Landlord and Tenant. They are able to act for either party and offer a service of property management for Landlords including rent reviews, lease renewal, organising repairs, security, fit-outs etc. Stuart continues to manage a number of property portfolio’s for clients who have used this service for many years.

Towards 2009............

Now that 2008 has drawn to a close, although we do not foresee an upturn in the property market for at least the next 6 to 9 months, we envisage that some of the government initiatives to stimulate the economy will gradually begin to have a positive effect on property markets. This may be assisted by further predicted drops in property values by up to 15%. However, the recession and current credit crisis is different to historic recessions and is likely to be more unpredictable.

It likely to be a turbulent few months for businesses but we are hopeful that calmer times are ahead.

Happy New Year!