Another mixed month for the Stourbridge area – despite some better than expected market activity we still seem to be in a gloom and doom mood. We are always good at talking the markets down and moaning about the state of things – surely we need to be more positive in our outlook and start to talk the markets forward. Yes we all know life is difficult, uncertainty over jobs and availability of finance, the sovereign debts in Europe and the major changes in the planning system. But there are signs of real change.

As a practice dealing in the land and commercial property sector we are seeing a string of sales and lettings finally completing. They may not be the bid developments and major deals but a sign things are changing, the industrial sector with companies seeking to expand, new office lettings from both expanding businesses and new starts. The retail sector is behind the pack but the continual success of Birmingham city centre is a beacon in the West Midlands.

The latest national RICS UK Commercial Market Survey-released last week, shows that tenant demand retreated over the quarter which, coupled with rising available space, is resulting in a more negative view on rental expectations. Surveyors attribute the fall in sentiment to the uncertain outlook for the wider economy. At the all property level, respondents turned downbeat across much of the UK, though the picture in London and the South remains broadly flat. There are also some tentative signs that the London market, which has largely bucked the national trend up to now, is beginning to see sentiment ease; rents are expected to fall in the capital for the first time in a year. Meanwhile, outside of London rental expectations turned even more negative.

As a contributor to the Bank of England’s review process the new Agents summary for October reports level of activity in the housing market remained depressed, due to concerns about job security, as well as a continued lack of mortgage availability, particularly for first-time buyers. There had been some increase in the number of high loan to value products being offered by lenders, but take-up had been low. Demand for newly built properties had begun to rise, thanks largely to shared equity schemes and the Government’s FirstBuy initiative. And buy-to-let investment had also been picking up, encouraged by strong rental demand.

So let’s not be full of gloom and doom, look for the positive it is out there.
 

Alan K Knight FRICS Head Of Commercial Walton and Hipkiss – Stourbridge   01384 397 797