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A NEW
YEAR – A NEW START?
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Well we have made it into 2010 and signs are that the
market is starting to move!! – This year so far we
have seen an increase in enquiries across the board
from commercial to house buying to land. Property
Developers are back looking at both commercial and
residential development. Although the deals are
nowhere near the figures discussed 3 to 4 years ago
the interest is in earnest. The Banks are still not
keen to lend for development but at least have started
to listen. Individuals or companies with ready finance
can now do deals – but the vendor still needs to be
realistic. Major land and property sales are now being
agreed in a different form with the some vendors and
purchasers entering joint ventures in sharing the risk
and the upside in the future – this is well worth
considering to enable the development market to
restart after a few years of little activity.
The final month of last year delivered the largest
monthly capital growth in over 20 yrs at 3.0%,
according to December’s IPD UK Monthly Index. The
figure beats the 2.9% delivered exactly 16 years
earlier in December 1993, at the end of the last major
property recession.
The fifth-consecutive monthly gain, which amounted to
a compounded growth of 8.8%, was sufficient to lift
returns on UK commercial property into positive
territory for the calendar year. In the first IPD
indication of the year, UK commercial property annual
total returns for 2009 were 2.2%, while capital growth
was -5.6%.
Demand for commercial property is still subdued with
some noticeable activity for both food and non food
retail, positive news is expected shortly from Tesco
and their plans for the town centre scheme in the
Crown Centre.
Over the last 12 months 19 retail business in
Stourbridge closed, due to liquidations and business
reasons with 5 re opening – shortly afterwards. On a
more positive note 14 new businesses opened including
Home Bargains in the old Woolworth unit in the
Ryemarket, and a number of other units there all
bringing a much busier level of activity to the
centre. Also last year saw the opening of the Old
Library and the relocation of major architects BBLB,
having chosen Stourbridge for its new home
amalgamating there offices from Redditch and
Bridgnorth bringing a highly respected cutting edge
professional business to the town.
On the planning and regeneration front Stourbridge is
going through the preparation of the Area Action Plan,
a Development Plan document prepared by the Local
Planning Authority setting out the planning framework
for Stourbridge Town. This will guide planning
decisions over the next 10 years or so and steer the
direction of the town centre’s regeneration. The
document is in final preparation with the Draft
Options due to be published in February 2010 and then
subject to six months public consultation with key
stakeholders in the town – so get involved.
This is an important step in the transformation of the
town centre and will finally become full policy in
Spring 2012 – this as we know is much needed and well
over due. Business and property owners in Stourbridge
can make a difference but need to act now. The input
of the local authority and local businesses is vital
to ensure agreement to the priorities for change in
the town.
Planning policy elsewhere is also moving a pace in
Bromsgrove District the moratorium against new
residential development has been lifted and will now
allow further much needed new residential development
throughout the area. Time again to consider the future
of your land or buildings. Although not the opening of
the “flood gates” this will enable and bring further
confidence to a fragile residential development
market.
Don’t get left behind take advice today and consider
your options and lets hope we all have a happy and
prosperous 2010
Alan K Knight FRICS
Head Of Commercial
Walton and Hipkiss – Stourbridge
01384 397 797 |
