Quarter 1 2023

“So, how’s the market?” If only I had a pound for every time that question has been posed over the last six months. I don’t, but I’m grateful that my opinion remains valued!

The answer to the question, at least on our side of the metaphorical fence is that it’s ok. Don’t get me wrong – the residential sales market is challenging, and new homes sales are truly hard work, but as far as commercial, investment and development transactions go, we’re replicating 2022’s numbers to date.

I mentioned in my last editorial that we’ve seen a shift in demand, competition and value, but careful positioning has helped us maintain business levels.

Sites with a big residential consent, particularly for flats, aren’t as popular as they were last year. Their demand and value has come off, and in several cases we’ve found buyers with other uses in mind including retirement, care and student housing. Sellers have to be realistic, or wait for the market to grow in value.

You’ll note that we’re not anticipating a recovery, or for the market to get back to where it was. That’s simply because the market reacts to numerous other outside factors that will never all be as they were at the most recent peak. Think about it. How long will it be before Boris is PM, the UK interest rate is at 0.10%, the Government is contributing 40% towards deposits for new homes and Ukraine is a peaceful nation with all it’s cities in good order and it’s borders as they were in 2021? Not going to happen. Things change, including the property market. The market won’t recover, but it will grow again – it always does. Our job is to continue doing deals, whatever the economic weather.

Bromley Office

9 St Mark’s Road, Bromley, Kent BR2 9HG

020 8315 5454

So, if larger resi sites are a tough sell and being snapped up for alternative uses, what about the rest of the market? Well, commercial space remains popular with tenants and owneroccupiers, and to more than enough investors, property will always be a better home for cash than the bank.

The second quarter has seen us conclude numerous lettings to a range of tenants from physiotherapists and IT firms to financial advisors, supermarkets and restaurateurs. Investment yields have softened, but we’re having no trouble finding buyers for decent opportunities that are sensibly priced.

The following pages report on a selection of deals concluded by Acorn’s Commercial & Development Division over the last three months, and I trust they prove interesting reading. If you have a commercial property, investment, portfolio or development site and want some forthright advice that will likely lead to a result, please do get in touch with one of our offices.

Jeff East — Director Jeff.east@acorngroup.co.uk

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