We thought it would be useful for all of our clients, and in particular our Commercial Clients, to provide an update at the end of the financial year and our thoughts for the coming year. In 2017 we saw market resilience in the Commercial Property sector for many of our Commercial clients, especially considering the back drop of the ongoing ‘Brexit’ preparations. We are heading into the final stretch. There will be a transition period after Brexit day, but on 29 March 2019, the United Kingdom will formally leave the European Union.
Brexit – Impact for Investors
The Prime Minister has announced reforms to planning rules in England in a bid to address the shortage of social housing. Mrs May announced that the existing National Planning Policy framework will be overhauled and reenergised to trigger an increase in house building. Proposals have also been put forward to make it easier for freeholders to extend upwards and to make it easier to develop agricultural land for housing. Indeed, the Coventry Telegraph has featured on its website an article outlining that productivity here in Warwickshire has grown by 30%, since 2009, nearly double the rate of the rest of the UK. Annual growth also grew for Warwickshire by 2.5% between 2015/16.
To give an idea of the current scale of development, Nuneaton and Bedworth Borough Council have indicated that over 10,000 new homes, and approximately 50 hectares of land are due to be developed over the next 15 years within the borough.
The demand is clearly there and if you would like to speak with us about selling land for development and/or planning promotion agreements, please do not hesitate to contact us on the email address below.
Changes afoot? The Transforming Nuneaton Project
Perhaps you have not seen the transformation of Nuneaton plans mooted by the Nuneaton and Bedworth Borough Council? Here is a direct link to the Council’s brochure/press release:
Nuneaton Retail and Commercial Sector
Nuneaton itself is strategically positioned at the centre of a triangle between Birmingham, Leicester and Coventry. It has a population of over 125,000 people and more than 300,000 living within 5 miles of the town centre. This begs the question, why are many of the commercial retail units within the town centre currently vacant? More recently we have started to see an upturn in the completion of new business leases to some start-up companies, who are doing very well, and who have availed themselves of keen rental rates in the town centre. It is clear that our landlord clients are keen to do a deal and we are very happy to assist with the legal aspects of a commercial purchase or leasehold transaction.
MEES Regulations in place from 1st April 2018
The Minimum Energy Efficiency Standard regulations or “MEES” regulations aim to improve the energy efficiency of buildings in the domestic and non-domestic private rented sectors in England and Wales. To summarise, from 1st April 2018, the MEES regulations will make it unlawful for a landlord to let property that does not comply with a minimum required energy efficiency standard of an “E” rating on a valid Energy Performance Certificate (EPC). According to Government statistics, 18% of non-domestic properties currently have an EPC rating of ‘F’ or ‘G’, and 65% have a rating of ‘D’ or below. If a building is not compliant, leases will not be invalid however, the landlord who is in breach of the regulations will become liable for a civil penalty. For some landlords, this may involve having to improve the energy efficiency of their building before entering into a lease. There is a possibility that the costs of improving the energy efficiency can be recovered from the tenant. If you are concerned, or if you require advice, please contact us today.