HEADLINES
INSIDE THIS ISSUE
New EPC regulations turn up heat on energy efficiency
Will proposed planning reforms help or hinder sustainable development?
South Coast office tops awards for fourth year running
Where next for the residential new builds?
Along with our full property listings
Expert property advice, delivering competitive advantage.
OFFICES TO LET
Suite G, Ferry House
Suites 4 & 5 Canute
Chambers
CANUTE ROAD, SOUTHAMPTON, SO14 3FJ
Ferry House is an historic Grade II listed building. Suite G is located on the first floor and benefits from natural light thanks to its sash windows enjoying a southerly aspect and high ceilings. The office is mainly open plan with a reception area. There are shared WCs, shower and kitchen facilities.
Newly refurbished office space
1 car parking space
Lobby with shared kitchen, shower and WCs
Canute Chambers, built in 1893 for the American Line, is a Grade II listed Flemish bond red brick with Portland stone dressings building. Suites 4 & 5 are located on the first floor with shared kitchen facilities. The suites are currently configured as two joining suites but can easily be let as two individual suites. The office is mainly open-plan but also includes one large meeting room of stud wall construction.
Open plan refurbished offices
5 car parking spaces
Suites available separately or as a whole
LOCATION
Both properties are located in a popular established commercial district in Southampton, Ocean Village. They are close to several bars and restaurants, a short walk to vibrant Oxford Street and just 6 minutes’ drive from Southampton Central Railway Station.
Itchen Bridge is nearby which offers access to junction 7 of the M27 to the east (4.5 miles) with Junction 3 to the west (5.6 miles) accessed via Mountbatten Way & Millbrook Road West.
SUMMARY
Ferry House
Suite G 70 sq m 758 sq ft
Canute Chambers
Suite 4 112 sq m 1,208 sq ft
Suite 5 82 sq ft 883 sq ft
Total 194 sq ft 2,091 sq ft
CONTACT
Nik Cox on 07870 557410 or via email ncox@vailwilliams.com Mary Pearson via email mpearson@vailwilliams.com
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Throughout this time, our South Coast team based in Portsmouth, Southampton and Bournemouth has been on hand to support our clients across the South Coast and Dorset, helping them to navigate the continuing choppy waters.
To support this, we have continued to recruit the best talent into our team to ensure we provide you with the best possible advice to support you to thrive. With that in mind, we are pleased to bring you this latest edition of Headlines, which provides a range of additional insight and advice to support you – whether you are an occupier, investor, developer, landlord or lender.
In this edition, you will find a broad range of articles from our commercial and residential property experts, as well as several property listings in support of our varied client base of occupiers, investors and developers - from prime offices to let, to well- located industrial premises available for immediate occupation.
Of particular interest is the recent change in EPC requirements which came in to force from the 1 April 2023.
We also discuss the potentially controversial planning changes that are likely to ease pressure on local authorities, but which will impact current housing targets, and provide our take on the residential market as the rise of interest rates and cost of living crisis take their toll.
I hope that you enjoy reading this edition of Headlines Magazine and do get in touch with a member of our South Coast team to discuss any specific needs you might have.
Russell Miller Regional Managing Partner, South Coast
PAGE 3 vailwilliams.com To comment on this edition or to advertise with us please contact Talia Jones on tjones@vailwilliams.com or via 07785 535 933 Savannah House 3 Ocean Way, Ocean Village Southampton, SO14 3TJ 4 Vail Williams tops south coast agency leaderboard 6 ABP Property - Open for business 9 How will new EPC regulations affect landlords? 10-11 Another year, another planning u-turn 14 The deals have been flying in 17 When might you need a property expert? 18-19 Residential property update Contents Welcome to the latest edition of Headlines Magazine – Vail Williams’ South Coast commercial property publication.
Since the last edition, it has remained a tumultuous time across the UK as the cost of living crisis has continued to bite and businesses have been forced to deal with some the worst interest rate rises for over a decade.
VAIL WILLIAMS TOPS OFFICE DEALS LEADER BOARD FOR FOURTH CONSECUTIVE YEAR ON SOUTH COAST: COSTAR DATA FOR 2022
Property consultancy Vail Williams has been named the most active disposal agent based on office square footage on the South Coast.
It is the fourth year running that the firm, which has offices in Bournemouth, Portsmouth and Southampton, topped the category leader board.
Vail Williams also led on being the most active disposal agent based on the number of deals, also for the fourth consecutive year.
The deals data for 2022 was compiled by CoStar, a global leader in commercial real estate information, with the company launching the awards in 2020.
Nik Cox, a Vail Williams partner who specialises in office sales and lettings on the South Coast, said: “These CoStar awards celebrate the performance of commercial property professionals in delivering results for landlords and occupiers in an increasingly busy market as people return to offices following the pandemic work-from-home culture.
“We are once again honoured to have led the leader board for the fourth consecutive year as the most active disposal agent, based on office square footage, on the South Coast.
“It is also great to again see Vail Williams recognised in the category of most active disposal agent based on the number of deals.”
Nik added: “With the international ports of Portsmouth and Southampton in the Solent region, and the ports of Poole and Portland in Dorset, this thriving economic region is home to more than 100,000 businesses.
“Many of them have office requirements that we are well placed to advise on, thanks to our team’s collective and individual knowledge, experience and track record of success for clients.”
Based on data submitted to CoStar over 2022, Vail Williams was involved in 58% of office sales and lettings.
Last year, Vail Williams scooped a hat trick of industry awards at the South Coast’s largest property event. Held at The Hilton at the Ageas Bowl, Southampton, the South Coast Property Awards recognised the annual contributions of property agents, surveyors, developers, dealmakers, planners, architects, consultants and property lawyers to the success of the sector.
The awards for Vail Williams were in three categories, with five firms shortlisted for each one: industrial/logistics consultancy (by deals), offices consultancy (by deals) and offices consultancy (by square foot).
Want an award–winning regional team to look after your property?
We have the local knowledge across the South Coast to ensure you get the best deal. Contact Nik Cox via ncox@vailwilliams.com to find out more on how we can help.
PAGE 4 vailwilliams.com
NIK
COX
Hounsdown House consists of a modern, detached, 2-storey purpose-built office building split into two wings per floor. Only the First Floor, North Wing remains available, with an ample provision of 19 car parking spaces.
Refurbished offices include:
LOCATION
Hounsdown House occupies a prominent position at the entrance to the well-established Hounsdown Business Park. The property is conveniently located approximately 5.5 miles west of Southampton Centre and on the edge of the New Forest National Park. The building is visible from the main estate road as well as the A326 and only 4.8 miles south of junction 2 of the M27.
PAGE 5 vailwilliams.com OFFICE TO LET Hounsdown House
SUMMARY 1st Floor - North Wing 348 sq m 3,750 sq ft CONTACT Nik Cox on 07870 557410 or via email ncox@vailwilliams.com
HOUNSDOWN BUSINESS PARK SOUTHAMPTON SO40 9LX
New comfort cooling and heating
Raised floors LED lighting Upgraded WCs New reception 19 car parking spaces
ABP PROPERTY: SOUTHAMPTON IS OPEN FOR BUSINESS!
Would you consider running your business from the Port of Southampton?
With so many business benefits, the question is, why wouldn’t you?
The Port of Southampton is ideally located on the south coast, close to international shipping lanes and less than 100 miles from mainland Europe. As the UK’s number one vehicle-handling port and Europe’s leading cruise turnaround port, the Port has excellent marine infrastructure as well as connectivity with key transport links, all set within a major city and supporting businesses right across the UK.
Around 2 million cruise passengers per year pass through Southampton’s five dedicated cruise terminals, heading for destinations across the globe. The Port’s container terminal is equipped with deep-water quays, enabling Southampton to handle the world’s largest container ships. We have on-site state of the art 5G digital infrastructure assisting the automotive sector whilst the Bulks Terminal supports a range of agricultural and construction markets.
And behind all of this, we deliver commercial property solutions. ABP Property provides commercial operators with unparalleled port-related facilities and new business space options linked to multiple transport options – a great place to manage your business. We can offer land to lease for development opportunities or a wide range of versatile warehouse and office space.
We own and manage the land within the Port and other strategic locations in Southampton and the Waterside, including Town Quay, Eling Wharf, and Marchwood Industrial Estate. We recently acquired Solent Gateway Limited, the port operator at Marchwood Military Port, and this site also comes under our development and leasing portfolio.
With significant leasing and development opportunities within our portfolio, we offer companies a great location in which to operate and the chance to benefit from the Solent Freeport.
Freeports are areas designated by the UK Government that benefit from incentives to encourage economic development. Freeports operate both tax and customs advantages. Tax sites offer occupiers business rates relief and other incentives to support capital investment, skills development, and local employment. Customs site procedures have the potential to enable duty deferral or the tariff-free movement of goods for export and import through simplified customs procedures.
We can offer your organisation huge benefits to relocate within the Port or within the ABP portfolio. Our Property Team are experts in building long-term partnerships with clients providing continuous support to improve operating efficiencies.
Ian Henderson, Head of Property at ABP Southampton, said: “We have a wide range of opportunities at the Port, from leasing land for development to existing accommodation, including warehousing and office units. Three areas within the Port benefit from tax site advantage conferred by the Solent Freeport status. I would encourage any business to contact us if they are considering a re-location.”
If your existing premises are no longer fit for purpose and you are ready for your next move, please get in touch with Ian Henderson, Head of Property, ABP Southampton –email ian.henderson@abports.co.uk or call 02380 488800 or 07843 977115.
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SUPPORTED CONTENT
OFFICE TO LET The Boathouse
TOWN QUAY
SOUTHAMPTON SO14 2AQ
The Boathouse at Town Quay offers everything you could need for a growing business, with its own self-contained building, boasting spectacular views of Southampton Water and 1,275 sq m (13,724 sq ft) of flexible space across four floors.
Refurbished offices include:
Air conditioning
Visitor and allocated car parking
1 space per 254 sq ft
Free use of BBQ area with stunning views across the marina
On site cycle storage
Kitchen facilities
Showers
Suspended ceilings
Double glazing
2 self contained flats with separate entrance
Outdoor balconies
Large roof terraces
LOCATION
The Boathouse at Town Quay boasts exceptional views of Southampton Water and Town Quay Marina, while providing a city centre business location with excellent road, rail and ferry links, creating a unique environment for your business employees and a perfect work-life balance.
SUMMARY
Ground floor 574 sq m 6,179 sq ft
First floor 537 sq m 5,780 sq ft
Second floor 164 sq ft 1,765 sq ft
Third floor Two flats
Total 1,275 sq m 13,724 sq ft
CONTACT
Alex Gauntlett on 07584 657826 or via email agauntlett@vailwilliams.com
Nik Cox on 07870 557410 or via email ncox@vailwilliams.com
PAGE 7 vailwilliams.com
OFFICE TO LET
12 MITCHELL WAY SOUTHAMPTON, SO18 2XU
5,769 TO 17,690 SQ FT (535.96 TO 1,643.45 SQ M)
Mitchell House is a prestigious office building providing high quality open plan office accommodation. The building benefits from a ground floor reception area providing stair and lift access to the upper floors. There are male and female WCs on the landings plus a shower on the 2nd floor. The office areas are mainly open plan with suspended ceilings, inset lighting, raised floors and air conditioning.
23 allocated car spaces
Located next to Southampton Parkway Railway Station and Southampton Airport
Prestigious stand-alone building
Air conditioning
Available as a whole or on a floor-by-floor basis
LOCATION
The premises are very well located just off junction 5 of the M27 motorway, immediately adjacent to Southampton Airport and Southampton Parkway railway station. Junction 4 of the M3 motorway is a short distance away giving access to London approximately 70 miles away. Both Eastleigh Town Centre and Southampton City Centre are within a short drive.
SUMMARY
From 5,769 to 17,690 sq ft
CONTACT
Russell Mogridge on 07815 737175 or via email rmogridge@vailwilliams.com
Alex Gauntlett on 07584 657826 or via email agauntlett@vailwilliams.com
PAGE 8 vailwilliams.com
How will EPC Regulations affect landlords?
With the continuing cost-of-living crisis, ways in which to cut carbon emissions and achieve greater energy efficiency has never been so important.
As of 1 April 2023, the next round of EPC Regulations came into force as part of the government’s push to achieve net zero emissions by 2050.
Going forwards, all commercial property on a lease tenure basis must have an energy performance certificate (EPC) rating of band ‘E’ or above in order to be let or sold. Failure to comply with these new regulations could see landlords potentially face significant fines of up to £150,000.
What does it mean for landlords?
Landlords are required by law to ensure that their properties meet the required EPC rating. Currently, all commercial property must hold an EPC rating of ‘E’ or above prior to any new leases or renewals being granted – a requirement since April 2018.
From 1 April 2023 the requirement was extended to all nondomestic rented properties including existing tenancies on most commercial properties.
Looking ahead, minimum compliance standards will be increased in phases to an EPC rating of ‘C’ by 1 April 2027 and ‘B’ by 1 April 2030.
Are there any exceptions?
Exemptions can apply where undertaking works to improve an EPC rating is either not possible or not economically viable.
Examples include:
• Where the cost of improvement works would exceed the expected value of energy bill savings over seven years
• Property devaluation
• Third-party consent (refusal of planning permission for improvement works)
Landlords seeking an exemption must make sure to apply for, and register an exemption which is valid from six months up to five years, after which a landlord must try again to make building improvements.
Get an EPC Assessment
It is advisable to have an EPC assessment carried out as the resulting recommendation report will give you a good place to start in establishing what additional measures or works are required to improve the energy rating of your building.
Completing this exercise in advance of needing a new EPC for your property will allow you the time to plan and budget for the works required to ensure your building remains lettable at the next relevant lease event.
These works can then be incorporated into the planned preventative maintenance (PPM) schedule for your building.
Who pays for the works?
Careful review of the lease will establish whether a landlord or tenant is responsible for the building fabric and services, and therefore who should implement and pay for the required improvement works.
Vail Williams can provide the technical expertise and property advice necessary to support you in improving your EPC rating, whether you are a landlord or tenant.
EPC ratings are more important than ever –
Have you checked yours?
The changes have now already taken place to have an EPC rating of ‘E’ or above, but prepping in advance is key. For any queries on EPC assessments you may need, contact Nick Miles on nmiles@vailwilliams.com
vailwilliams.com PAGE 9
NICK MILES
ANOTHER YEAR, ANOTHER PLANNING U-TURN WITH MISSED OPPORTUNITIES
Last year, an early Christmas present was delivered by the Department for Levelling Up, Housing and Communities (DLUHC), in the form of a new consultation on ‘Levelling-up and Regeneration Bill: reforms to national planning policy’.
What changes are proposed?
Unlike previous consultations, more detail explaining the rationale of the proposed direction of travel has been included. So, what are the key themes that have emerged from the proposed National Planning Policy Framework (NPFF) changes?
Most of the proposed changes to the NPPF relate to housing and in turn, the Green Belt.
It’s no surprise given the level of local opposition to large scale residential development proposals and Local Plans including Green Belt allocations, to meet nationally prescribed housing targets.
What effect will the changes have?
Since the announcement regarding the changes, some Local Plans have been put on hold, including South Staffordshire Council, North Somerset Council, Horsham District Council, Isle of Wight Council, Teignbridge District Council, Stockport Council, and Mole Valley, all issuing statements to this effect.
PAGE 10 vailwilliams.com
• Housing figures, housing delivery and land supply tests • Green Belt • Community involvement • Beautiful design • Climate change and sustainability • Local Plan delivery and timescales
Instead, these figures would be considered as an advisory starting point as opposed to a minimum target which can be negotiated down or up, based on suitable evidence / constraints.
These evidence / constraints can include the Green Belt with the Government clarifying that Green Belt boundaries are not required to be reviewed and altered to meet the objectivelyassessed housing need.
This new approach could create further opportunity for higher density residential development within town centres and on previously developed land.
However, any changes in density increase would need to be delivered ”in keeping with the character of the area” - a subjective assessment providing further reason to refuse residential schemes within town centres. This could have a negative impact on town centre regeneration which require reimaging.
How can we meet housing targets?
The two initial options of building out (settlement expansion) and building up (higher density) seem to have been made more difficult in all but the most urban locations.
Whilst the onus should not fall solely on the Local Authority to deliver housing, the flexibility proposed allowing local authorities to calculate housing targets does not help the case for development, instead reinforcing the argument to retain the status quo.
The government has tried to address build-out rates by suggesting that financial penalties will be applied for developers who are building out too slowly, and that ‘past irresponsible planning behaviour’ should be a material consideration. However, the consultation stops short of clearly defining what such behaviour entails.
The government has also tried to incentivise and support communities in delivering affordable housing.
Whilst this has some merit, it is unlikely to be wholly successful given the level of local opposition to affordable housing delivery and lack in clarification over how this would tie into the existing planning framework. This is highlighted by the current evidence relating to neighbourhood plans which have had limited impact in boosting housing supply.
The renewed emphasis on the character of the area through the introduction of design codes increase the appetite for local authorities to bring forward identified urban sites and those on the brownfield register.
Delays in local plan making may increase as authorities reevaluate the housing target and potential site allocations, and with less weight being given to the five-year housing supply and delivery rates, authorities are likely to push back on the need to meet these targets.
Emphasis will probably turn to known sites as opposed to new sites, however, additional calls for development land (Call for Sites exercises) could provide the opportunity to include areas with high redevelopment potential, particularly outside areas of green belt.
In the longer term, this will place greater emphasis on previously developed land and sites with a high level of redevelopment potential, with urban, town centre and high street sites likely to be an area of particular focus.
In-fill development will likely become the prevailing form of housing delivery as authorities look to protect settlement boundaries from further encroachment with development locations encouraged in sustainable and highly accessible areas.
Another missed opportunity
Setting aside the obvious political motives for the revision of the government’s flagship planning policies, the current consultation stops short of recognising the ability of the planning system to guide sustainable growth through improvements to infrastructure and the environment.
More time needs to be spent working with developers assessing where the most appropriate opportunities for development are, and maximising the positive benefits that development can bring.
The NPPF should be looking to promote a more coordinated, proactive, joined up approach to development at all levels. Instead, this overly pessimistic, restrictive approach will result in a piecemeal approach to development, which is in no one’s best interest and will not deliver significant infrastructure improvements.
Every local authority has a different plan in place, but we work with councils up and down the country on a daily basis. For more on how we can help, contact David Ramsay on dramsay@vailwilliams.com
DAVID RAMSAY
PAGE 11 vailwilliams.com
> The proposed changes to the NPPF are likely to ease pressure on Local Authorities to hit current housing targets by reducing the weight currently given to the prescribed targets calculated through the standard methodology.
Getting planning permission approved can be tough – we’ve got you covered.
> It is disappointing to see yet another missed opportunity to deliver positive planning change as there are many great opportunities for innovation and modernisation within the industry.
ONEDORSETSTREET.CO.UK #FEELBETTERWORKBETTER Floor Sq ft Sq m Ground 2,883 268 First 7,679 713 Third 4,346 403 Total 14,908 1,384 Nik Cox 07870 557 410 ncox@vailwilliams.com l Open plan flexible floorplate l Communal break out facilities l 13 cycle and 18 car parking spaces l 2 electric car charging points l New shower and changing area l Fitwel certification for healthier work place environments Andy Hodgkinson 07702 801 595 AHodgkinson@lsh.co.uk Upgrade to a healthy sustainable office. PAGE 12 vailwilliams.com
3 Waterside Place Third floor available 5,266 sq ft Emma Lockey 07825 357 481 emma.lockey@cbre.com 5 Waterside Place Ground floor available 4,184 sq ft Refurbished office space with breathtaking views over the harbour. l New air conditioning l New raised floors l Suspended ceilings with LED lighting l New shower facilities and WC’s l Generous on-site car parking l Fitwel 2 star rating watersideplace-southampton.co.uk Nik Cox 07870 557 410 ncox@vailwilliams.com PAGE 13 vailwilliams.com
THE DEALS
PAGE 14 vailwilliams.com
HAVE BEEN FLYING IN
PAGE 15 vailwilliams.com 36 Brunel Way Segensworth FAREHAM • Industrial • 74,891 sq ft • Property & Investment Management Ltd • Industrial • 7,065 sq ft • Industrial Property Investment Fund • Office • 7,460 sq ft • RO Properties Ltd • Industrial • 14,690 sq ft • William Fishwick & Sons 3.1 Central Point Kirpal Road PORTSMOUTH • Industrial • 4,366 sq ft • Ankers & Rawlings Developments • Industrial • 5,284 sq ft • Clearglass Ltd • Office • 4 transactions totalling 20,000 sq ft • Kingsbridge Estates Ltd • Industrial • 16,915 sq ft • Northwood Urban Logistics Unit 1 Easton Lane Business Park WINCHESTER • Office / Retail / Trade Counter Showroom / Industrial • 5,394 sq ft • Picador Plc • Industrial • 18,047 sq ft • Apollo Accident & Repair Group Ltd • Office • 14,411 sq ft • Warborough Investments Ltd • Office • 7,262 sq ft • Caspian One Unit D Hazleton Interchange WATERLOOVILLE 65 Millbrook Road East SOUTHAMPTON Unit A1 Eagle Way EXETER Dorset Street 2nd Floor SOUTHAMPTON Charlotte Place SOUTHAMPTON Hounsdown House SOUTHAMPTON Unit F Link Estate Holton Heath, POOLE Unit 16 Bedrock Park WIMBORNE Second Floor Telephone House BOURNEMOUTH sale LETTING LETTING LETTING acquired LETTING LETTING sale LETTING acquired LETTING LETTING
OFFICE TO LET GROUND FLOOR, THE QUAY
OCEAN VILLAGE, SOUTHAMPTON SO14 3TG
Ground Floor, The Quay, extends to 895 sq ft (83 sq m) of high-quality office accommodation, situated less than a mile southwest of Southampton City Centre within the highly sought-after Ocean Village Marina. The suite is part of an impressive purpose-built, four storey office building which has been fully refurbished. A perfect fit for a smaller company, or as a satellite office for a larger organisation, offering the benefits of a purpose-built building in a waterfront location.
Part of a mixed-use marina development comprising residential apartments, waterfront bars and restaurants and offices
Private parking area
Male and female WCs with disabled facilities
Refurbished reception area and refreshed lift and stair access
Located close to WestQuay Shopping Centre, the Showcase Cinema, and the Bargates retail area
LOCATION
The premises are conveniently located for city centre access, and within easy reach of I.O.W. Ferry Terminal, Southampton Railway Station, the motorway network, and Southampton Airport.
SUMMARY 83 sq m 895 sq ft
CONTACT
Nik Cox on 07870 557410 or via email ncox@vailwilliams.com
PAGE 16 vailwilliams.com
When might you need a property Expert Witness?
An Expert Witness is someone called upon, to provide an expert opinion on a matter in which they are recognised as an industry expert, in a dispute in a Tribunal or Court of Law.
But when it comes to property, what sort of situations might require an expert opinion in? Stephen Hobbs explains:
In almost all cases where I am appointed as an Expert Witness, I am either instructed by or end up working closely with solicitors, where they are acting for one of the parties to a legal dispute.
A dispute that requires an opinion from an Expert Witness can be about anything from medical negligence or claims of faulty workmanship, to disputes over the rental value or market value of a particular property.
When acting as an Expert Witness, the overriding duty is not to the client, but to the tribunal where we are giving evidence.
It is the solicitor’s job to advocate on behalf of a client, but the Expert Witness’ role is to give a true and honest opinion which is independent and unbiased, falling within the scope of our expertise, experience and knowledge.
But when might you need an Expert Witness in a property dispute?
Claims of property valuation negligence
If a lender loses money on a property loan, they might refer back to the valuation advice they were given when the loan was made.
An Expert Witness may be required to carry out a retrospective valuation to determine whether the advice given was reasonable, or whether it could have been negligent.
Claims of negligence can also arise against solicitors who provided a lender with legal advice when a loan is made, which subsequently turns out to be potentially negligent, compromising the bank’s ability to rely on its security to recover the loan.
Disagreement over Market Value
Occasionally, Expert Witnesses are needed to provide independent property valuation advice when a dispute arises over a land or building’s market value.
This is particularly relevant when there is an ‘option’ to purchase at a later date, at a price to be determined in the future when market values have changed.
Similar disputes can arise between developers and landowners when a purchase price is agreed and contracts are close to exchange, but one party stalls due to a dispute over market value.
Enhanced value and overage
Sometimes, when a landowner agrees a deal to sell land to a developer, they agree an overage agreement, meaning that if the developer obtains planning consent for the site, a proportion of the enhanced value of the site would go to the landowner.
However, there can be disputes over the enhanced site value, requiring the independent opinion of a valuation expert to assess whether the landowner has been paid the correct overage value.
PAGE 17 vailwilliams.com Need someone to fight your corner for a property dispute?
Williams works with a range of law firms to provide Expert Witness advice. Contact Stephen Hobbs on shobbs@vailwilliams.com to discuss your requirements.
Vail
STEPHEN HOBBS
RESIDENTIALPROPERTY: SPRING UPDATE
The squeeze on household incomes from the rising cost of living, together with the continued rise in interest rates, which increased once more in May to 4.50%, has slowed the housing market at the start of 2023, particularly compared with the rapid growth of recent years.
As 2023 progresses, the housing market will continue to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both housing supply and demand overall, with house prices forecast to fall around 8% over the course of the year.
The cost of the average property could drop to April 2021 prices – still significantly above pre-pandemic levels.
House prices trends
In January, Halifax reported that there was some stability in UK house prices with the average house price remaining largely unchanged at £281,684, rising by 1.1% to £285,476 in February.
This followed a series of significant monthly falls at the end of last year (-1.3% in December and -2.4% in November).
Alongside this, the pace of annual house price growth has stabilised back to the +2.1% rate seen in December 2022.
The average house price is now around £8,516 (-2.9%) below its peak in August last year, though it remains nearly £9,000 higher than in January 2022 (£276,483).
£285,476 Average House Price (February)
+2.1% Annual house price growth
PAGE 18 vailwilliams.com
Reservations and sales
Several major residential housebuilders reported a decline in new home sales and reservations, and an increase in cancellation rates in Q3 and Q4 2022.
This continued into 2023, with the January 2023 RICS Residential Market Survey results show metrics on buyer enquiries, agreed sales and new instructions remain negative, with HMRC monthly property transaction data showing the number of UK home sales decreasing in January 2023.
Land market hiatus
Savills reported a significant slowdown in residential development land transactions in Q4 2022, with 10% fewer development sites sold compared to the same period in 2021.
Economic uncertainty, increased costs and slower sales rates have paused many land sales across all UK markets.
Despite fewer land transactions, evidence indicates that development land values have started to fall as developer purchasers build a greater degree of risk into their land builds.
Planning concerns
The Home Builders Federation (HBF) has warned that the changes to England’s national planning policy framework (NPPF) and what developers say is over-strict enforcement of environmental regulations, could result in a collapse in the supply of new houses, with the government meeting less than half its annual target.
Bellway Homes indicated that they saw a fall in new house reservations of 12.4% to just 191 a week over the period from 1 August 2022 to October 2022, comparing with 218 in the same period in 2021.
This fell further towards the end of 2022 with reservation rates down 60%, however, rates are now beginning to rise in what Bellway call a seasonal pick-up and some easing of affordability pressures.
Barratt Homes also stated that its private sales per site in the period since the start of October fell 47% on the previous year.
Meanwhile, Taylor Wimpey reported that the rate of net sales per week fell to 0.51 in the second half of last year compared with 0.91 in the same period in 2021.
Over the same period, the cancellation rates for homes rose to 24% from 14% a year earlier, with higher mortgage rates and a heightened level of economic uncertainty major factors.
It is hoped that, as cost of living pressures ease, the market will slowly improve into 2023.
House building
The Building Cost Information Service (BCIS) predicts that housebuilding will fall 20% in 2023, but will recover slightly in 2024 and 2025, before stronger growth returns.
The sentiment is shared by the Home Builders Federation who, following research, expect housebuilding to fall to its lowest level since the second world war, with Taylor Wimpey and Persimmon both confirming they will reduce the number of houses they build in 2023 by a third.
This will impact output which is expected to fall by 15.5% in 2023, before single digit growth returns in 2025, with contractors focusing on building out existing developments first.
This follows several years of housing supply spurred by the adoption of the NPPF, designed to stop councils blocking large numbers of new developments, which doubled housing supply between 2012 and 2019. However, the government has since u-turned on this approach.
Economic outlook
As the war in Ukraine surpasses the one-year mark, the conflict has almost certainly had an negative impact on the residential property market, particularly in London where there is significant Russian residential investment and sanctions have been imposed.
Moreover, oil and gas prices have continued to increase, and a price increase in these commodities will continue to contribute towards rising inflation, which will continue to affect potential buyers, who will face higher mortgage rates.
We may see more volatility in the residential market as the year goes on, with ongoing macro-economic factors such as the war in Ukraine, the cost-of-living crisis and the continued challenge of rising inflation rates taking their toll.
We have seen the residential market undergo a change in sentiment overnight before, particularly after a period of sustained growth. In light of this, the Bank should adopt elevated levels of caution in exercising prudent lending criteria.
GARY JEFFRIES
Our team are equipped to help you with your development queries. Contact Gary Jeffries on gjeffries@vailwilliams.com to start the conversation.
PAGE 19 vailwilliams.com
-12.4%
-47%
24% New
New house reservations (Bellway)
Private sales per site (Barratt)
house cancellation rate
The last year has been a rollercoaster for the residential sector – Are you up to date?
Clear.
Dependable. And fast, for when time is of the essence.
should
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Law. As it
be.
Current property listings...
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Address Town Tenure Property Type Size from Sq Ft Size to Sq Ft Rent Sq Ft Price Units 1 & 2, 44 Salisbury Street Amesbury For Sale Investment, Retail 6671 6671 £675,000 Building B Dorset Business Park, Winterbourne Whitechurch Blandford Forum To Let Warehouse, Industrial / Warehouse 9194 42833 £4.55 Buildings C - D Dorset Business Park, Winterbourne Whitechurch Blandford Forum To Let Warehouse, Industrial / Warehouse 9003 127085 £2.27 Dorset Business Park, Winterbourne Whitechurch Blandford Forum To Let Warehouse, Industrial / Warehouse 8416 179010 £1.61 42-46 London Road Bognor Regis To Let Retail 3658 3658 £15.04 2B Roundways Industrial Estate, Elliot Road West Howe Industrial Estate Bournemouth To Let Industrial / Warehouse 5665 5665 £9.75 Stour House, Deansleigh Road Bournemouth To Let Office 7276 21840 On application Melbury House, 1-3 Oxford Road Bournemouth To Let Office 2394 23439 £18.50 1B Central Business Park, Southcote Road Bournemouth To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 33742 33742 £4.00 Suite B Manor House, 1 Macaulay Road Broadstone To Let Office 2120 2120 £12.03 Concept House Link 414, Stoneycroft Rise Chandlers Ford To Let Office 5992 12404 £23.02 24 South Street Chichester To Let Restaurant, Retail 2252 2252 £29.97 34 South Street Chichester To Let Leisure, Restaurant, Retail 3310 3310 £15.86 Minerva Heights (Retail), Old Broyle Road Chichester To Let/ For Sale Retail 3943 3943 On application On application Unit 2WN, Portfield Trade Centre, Bognor Road Chichester To Let Trade Counter, Industrial / Warehouse 4228 4228 £16.00 45 South Street Chichester To Let Office 1276 5056 £16.81 Minerva Heights (Employment), Old Broyle Road Chichester To Let Office 7416 30472 On application Former Utility Site, Terminus Road Chichester To Let Open Storage 12000 83635 £2.50 Springfield Park, Bognor Road Chichester To Let Industrial / Warehouse 20000 100000 £11.50 Unit 8, 20 Airfield Way Christchurch To Let Industrial / Warehouse 3935 3935 £9.02 First Floor, North Wing, Signal House, Grange Road Business Park Christchurch To Let Office 7210 7210 £10.00 Unit 87 (48 Thackeray Mall), Fareham Shopping Centre Fareham To Let Leisure, Other, Retail 2481 2481 £23.18 Spectrum, 1600 Parkway, Solent Business Park, Whiteley Fareham To Let Office 2577 2577 £17.00 South Barn Cams Hall Estate Fareham To Let Office 2668 2668 £20.61 35 Waterside Gardens Fareham To Let Office 2756 2756 £16.33 91 Southampton Road, Park Gate Fareham To Let Retail 2866 2866 £16.57 Delme 2 Delme Place, Cams Hall Estate Fareham To Let Office 4096 4096 £21.00 Unit 20-21 (13 - 15 Westbury Mall) Fareham Shopping Centre Fareham To Let Retail 2250 4548 £21.99 Forum 5, Solent Business Park Fareham To Let Office 7525 7525 £23.00 9 Brunel Way Fareham To Let Industrial / Warehouse 13829 13829 £7.30 L3 Market Quay Fareham To Let Leisure, Retail 6445 14965 On application 12 Brunel Way Fareham To Let Industrial / Warehouse 24979 24979 £11.00 One Cobham Road Ferndown To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 35040 35040 On application 136 High Street Gosport To Let Retail 5967 5967 £10.89 Ground Floor 22 Compass Point, Ensign Way Hamble, Southampton To Let/ For Sale Office 2090.3 2090.3 £18.42 10D Solent Trade Park, Solent Road Havant To Let Industrial / Warehouse 2105 2105 £15.00 Solent Trade Park, Solent Road Havant To Let Industrial / Warehouse 4722 4722 £15.00 Spring Business Park, New Lane Havant To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 4000 6000 £11.50 Furniss Way Hayling Island To Let Development Land, Leisure 7319.452 7319.452 On application Vanbrugh House, Botleigh Grange Business Park Hedge End To Let Office 2662 8751 £24.00 Top Floor Burlington House Botleigh Grange, Grange Drive Hedge End Southampton To Let Office 5200 10835 £24.00 Unit B Horatio Court, Hannah Way, Gordleton Industrial Estate Lymington To Let Industrial / Warehouse 2480 2480 £9.68 Unit 740 Ampress Lane Lymington To Let Office 2889 2889 £13.50 330 Ampress Park, Ampress Lane Lymington To Let Industrial / Warehouse 7669 7669 £9.00 Unit 310 Ampress Park, Ampress Lane Lymington To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 16833 16833 £8.50 Units 310 & 330 Ampress Park, Ampress Lane Lymington To Let Industrial / Warehouse 24502 24502 £8.57 25/27 Station Road New Milton To Let/ For Sale Industrial/Logistics, Trade Counter / Showroom 7582 7582 £7.25 Council Offices Penns Place Petersfield To Let Office 43132 43132 £9.85 Majestic 1, Altitude, 56-58 Parkstone Road Poole For Sale Office 1526 1526 £340,000 exclusive of VAT
Current property listings...
PAGE 22 vailwilliams.com
Address Town Tenure Property Type Size from Sq Ft Size to Sq Ft Rent Sq Ft Price Magna Business Park, Magna Road Poole For Sale Development Land, Industrial/ Logistics, Land / New Build, Warehouse, Industrial / Warehouse 19909 60949 On application Unit 6 Nuffield Trade Centre, Nuffield Road Poole To Let Trade Counter, Industrial / Warehouse 2546 2546 On application County Gates House, Poole Road Poole To Let Office 2917 12712 £17.00 22 Broom Road Poole To Let Industrial / Warehouse 44151 44151 £400,000.00 Magna Business Park, Magna Road Poole To Let/ For Sale Development Land, Industrial/ Logistics, Land / New Build, Warehouse, Industrial / Warehouse 19909 60949 On application On application Suite West 003A, Ground Floor 1000 Lakeside Portsmouth To Let Office 2371 2371 £23.00 3 St Georges Business Centre, St. Georges Square Portsmouth To Let/ For Sale Office 635 2700 £17.59 179 Commercial Road Portsmouth To Let Retail 2741 2741 £16.42 Fairfield House, Kingston Crescent Portsmouth To Let Office 2742 2742 £18.00 TP8 Phase 2 The Pompey Centre Portsmouth To Let Trade Counter, Industrial / Warehouse 3003 3003 £15.48 Unit B Chaucer House, Isambard Brunel Road Portsmouth To Let Office, Retail, Leisure, Healthcare 3272 3272 On application Unit D 226-238 Commercial Road Portsmouth To Let Retail 3509 3509 £12.82 C6 Portfield Industrial Estate, Nevil Shute Road Portsmouth To Let Industrial / Warehouse 4230 4230 £11.00 Unit A Chaucer House, Isambard Brunel Road Portsmouth To Let Office, Retail, Leisure, Healthcare 4305 4305 On application Unit C1 Mountbatten Business Park, Jackson Close Portsmouth To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 5070 5070 £13.50 Commercial Space, Brunel House, The Hard Portsmouth To Let Leisure, Retail 5175 5175 On application Unit A7 Railway Triangle, Walton Road Portsmouth To Let Industrial / Warehouse 5399 5399 £10.75 Unit A11 Railway Triangle, Walton Road Portsmouth To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 5401 5401 £10.75 Unit A10 Railway Triangle, Walton Road Portsmouth To Let Industrial/Logistics, Industrial / Warehouse 5405 5405 £10.75 Ground Floor Suite 004/005 1000 Lakeside, North Harbour Portsmouth To Let Office 6673 6673 £18.58 Monaco House, Painter Close Portsmouth To Let Industrial / Warehouse 7325 7325 £11.60 Building 37 Broad Oak, Airport Service Road Portsmouth To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 7723 7723 On application West Suite First Floor 4000 Lakeside North Harbour Portsmouth To Let Office 7908 7908 £24.00 Shore House - Ground Floor, Compass Road Portsmouth To Let Office 4984 10334 £19.75 Railway Triangle, Walton Road Portsmouth To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 5399 10806 £10.75 Third Floor Building 2000 Lakeside, North Harbour Portsmouth To Let Office 11301 11301 £24.00 Voyager Park, Units E4 And E5, Portfield Road Portsmouth To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 7081 16666 £12.50 Mountbatten Business Park, 3 Grove Road, Farlington Portsmouth To Let Industrial / Warehouse, Trade Counter / Showroom 19522 19522 £5.89 Building 49 Broad Oak, Airport Service Road Portsmouth To Let Office, Hi Tech / Lab 6970 21524 On application Units C1-C3 Voyager Park, Portfield Road Portsmouth To Let Development Land, Industrial/ Logistics, Warehouse, Industrial / Warehouse 9085 22711 On application 3B, Voyager Park, Portfield Road Portsmouth To Let Land / New Build, Open Storage 41382 41382 £3.02 Units 1, 4, 5 And 6 Merlin Park, Airport Service Road Portsmouth To Let Industrial / Warehouse 8191 49934 £12.50 Unit B Railway Triangle Portsmouth To Let Industrial / Warehouse 106497 106497 On application Parvaneh Park, Embankment Way Ringwood For Sale Industrial / Warehouse 1690 1690 £350,000 to £375,000 Per Unit for Virtual Freehold Interest Unit 6 Crow Arch Lane Industrial Estate Ringwood To Let Industrial / Warehouse 2897 2897 £6.39 Unit 4A GP Centre, Yeoman Road Ringwood To Let Industrial/Logistics, Office, Warehouse, Industrial / Warehouse 3052 3052 £12.04 Bramble House, Forest Gate Business Park, Spring Lane Ringwood To Let Office 3996 3996 £18.14 Endeavour House, Crow Arch Lane Ringwood To Let Office 1904 8113 £13.50 126 The Street Rustington To Let Cafe (A1), Restaurant, Retail 2375 2375 On application 2 Oakridge Office Park, Whaddon Salisbury For Sale Office 1639 1639 Offers in the region of £286,002 Unit 11 Mitchell Point, Ensign Way Southampton For Sale Industrial / Warehouse 2537 2537 £340,000 Sarisbury Green United Reformed Church 162 Bridge Road, Sarisbury Green Southampton For Sale Other 3897 3897 Offers from £800,000 Brunel House 21 Brunswick Place Southampton For Sale Office 13357 13357 On application The Boathouse, Town Quay Southampton To Let Office 3000 3000 On application
Current property listings...
PAGE 23 vailwilliams.com
Address Town Tenure Property Type Size from Sq Ft Size to Sq Ft Rent Sq Ft Price Hounsdown House, Hounsdown Business Park Southampton To Let Office 3750 3750 £20.00 Unit 5 The Crosshouse Centre Southampton To Let Industrial / Warehouse 3823 3823 £7.85 Ground Floor West, Jellicoe House, Grange Drive Southampton To Let Office 3855 3855 £24.00 5 Waterside Place, Town Quay Southampton To Let Office 1250 4184 £21.50 Admiral Sir Lucius Curtis, Canute Road Southampton To Let Leisure 4855 4855 On application Saxon House, Saxon Wharf, Lower York Street Southampton To Let Office 1575 4903 £15.30 17 Compass Point, Ensign Way, Hamble Southampton To Let Industrial / Warehouse 5154 5154 £12.00 3 Waterside Place Southampton To Let Office 5266 5266 £24.50 16 Compass Point, Ensign Way, Hamble Southampton To Let Hi Tech / Lab, Marine, Office, Industrial / Warehouse 6001 6001 £12.00 29 Winchester Road Southampton To Let Industrial/Logistics, Open Storage, Trade Counter, Trade Counter / Showroom, Warehouse, Industrial / Warehouse 7426 7426 £7.41 Harbour House Town Quay Southampton To Let Office 1119 10785 £25.00 Brunel House 21 Brunswick Place Southampton To Let/ For Sale Office 13357 13357 £14.00 One Dorset Street Southampton To Let Office 2883 14908 £24.50 12 Mitchell Way, Eastleigh Southampton To Let Office 5769 17690 £21.93 Southampton Science Park - Benham Campus Plot 1, Chilworth Southampton To Let Hi Tech / Lab, Office 30600 30600 First Avenue Southampton To Let/ For Sale Industrial/Logistics, Warehouse, Industrial / Warehouse 33708 33708 £7.12 Twenty3 Brunswick Place Southampton To Let Office 12701 40000 £26.00 The Point, 69-81 Commercial Road Southampton To Let Office 9395 67000 On application Handleys' Corner, 44-46 Palmerston Road Southsea To Let Retail, Leisure, Office, Healthcare 3173 24836 On application Roman House, Salisbury Road Totton To Let Office 4300 4300 £20.00 35 Black Moor Road, Ebblake Industrial Estate Verwood To Let Office 3175 3175 £15.75 Unit 3, 25 Black Moor Road, Ebblake Industrial Estate Verwood To Let Industrial / Warehouse 3940 3940 £9.52 Prospect House, Sandford Lane Wareham For Sale Office 7553 7553 £900,000 Unit D Wellington Gate - Ground Floor Waterlooville To Let Office 7500 7500 £10.67 Hazleton Interchange, Horndean Waterlooville To Let Industrial / Warehouse 3000 22757 On application Unit 320 Proxima Park Waterlooville To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 30000 50000 On application Proxima Park - Phase 2, Proxima Park Waterlooville To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 20000 126500 On application 15 Telford Road, Ferndown Industrial Estate Wimborne For Sale Industrial / Warehouse 3527 3527 £475,000 (excluding VAT) 70-72 Cobham Road, Ferndown Industrial Estate Wimborne For Sale Warehouse, Industrial / Warehouse 7455 7455 Offers in the region of £900,000 Freehold with vacant possession Bedrock Park, Units 1-11A - Trade Units, Vulcan Way, Ferndown Industrial Estate Wimborne To Let Industrial/Logistics, Trade Counter, Trade Counter / Showroom, Warehouse, Industrial / Warehouse 2688 4762 £13.50 Bedrock Park - Units 18-26 - Warehouse & Industrial, Vulcan Way, Ferndown Industrial Estate Wimborne To Let Industrial/Logistics, Retail, Warehouse, Industrial / Warehouse 2886 6260 £11.50 Ferndown 50, Cobham Road, Ferndown Industrial Estate Wimborne To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 53600 53600 On application Bedrock Park, Units 14-17 - Light Industrial And Warehouse, Vulcan Way, Ferndown Industrial Estate Wimborne To Let Industrial/Logistics, Warehouse, Industrial / Warehouse 14941 64583 £10.36 Plot C, Cobham Gate, Ferndown Industrial Estate Wimborne To Let Development Land 30000 100000 On application 10 Jewry Street Winchester To Let Office, Restaurant, Retail 2050 2050 £26.83 Unit 4 Winchester Trade Park Winchester To Let Retail, Trade Counter / Showroom, Industrial / Warehouse 3045 3045 On application Regency House, 2-4 Southgate Street Winchester To Let/ For Sale Office 1185 5554 £23.00 2nd Floor 2 Royal Court, Church Green Close Winchester To Let Office 3000 6746 £21.00 Wykeham Court, Victoria Road Winchester To Let Office 7123 22850 £27.50 Former TJ Waste Site, Barfield Close Winchester To Let Open Storage 26136 26136 £3.06
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