As our regular readers will know, AWH often sponsors the quarterly RICS Chart Book and we are delighted to have been able to do so again recently. The latest Economy and Property Market update published in May recognises an increasingly optimistic view of the economic and property market, one which is expected to continue as the rebound of the economy looks positive over the coming months.
Commercial Property Owners – what this means for you
With the apparent increasing shift towards a working environment that revolves around both office and home working, we believe that the office footprint may be scaled back with an average reduction of 12% over next 2 years.
Jamie Chamberlain, Sales Director here at AWH, comments:
“As an owner of commercial property you may be concerned that this change means you will not be able to rent out your office space, leading to a dilapidation of your property. Now is the time to invest and make changes to your property to ensure it fits with what the future office will look like and to meet new legislations over ventilation etc. Otherwise you risk your property being unattractive at best and in a state of disrepair at worst.”
Our recent article on what dilapidation is and how to address it may be helpful if this is something that applies to you. Or if you would like to talk to one of our team about how to make your commercial property an attractive office space, we would love to hear from you. Speak to Jamie Chamberlain on 020 70611100 or firstname.lastname@example.org.
Residential Property – will the price rise continue?
Restrictions and work-related changes brought about by the pandemic have led to residential pricing rising sharply as people look for more space to live and work, bolstered by low interest rates and the break in stamp duty. However, while prices are expected to continue to rise, supply of homes being put on the market is expected to grow more slowly in comparison.
This may be good news for Buy-To-Let investors as it is likely to drive up private rents. What role the upcoming planning reforms will have on improving the supply does remain to be seen though, especially with the focus on ensuring that quality and safety are not compromised.
If you are looking for some expert advice on buying or selling residential properties, please contact us today.
Construction – the latest trends
Due to the economic challenges that have been prevalent throughout the pandemic, property owners and investors have, perhaps understandably, been seeking to make the most of the assets they already have by focusing on repair and maintenance, leading to this area showing the strongest increase in construction output over the last 15 months.
While repair and maintenance has been followed by new infrastructure work and housing, commercial property has lagged behind quite significantly, and we anticipate workloads will increase across the board over the next 12 months with private residential work leading the way.