The UK’s commercial property market took the beating of its life in the hours and days following the decision to leave the EU. Investors dashed toward the exit as swiftly as Nigel Farage made his gloating and quite nauseating speech in European Parliament, and UK property prices sunk to their lowest since 2009 at the peak of the financial crisis.
With all the uncertainty surrounding commercial property investment following the Brexit vote, a reported £18 billion worth of UK commercial property funds were suspended from trading. This led to drastic fears that major London-based firms would relocate their offices to other parts of Europe, meaning a significant loss of jobs and income for commercial property owners.
UK Commercial Property recovery?
But the Brexit blizzard appears to have finally abated in the UK commercial property sector. According to the IPD real estate index, overall property values for UK commercial assets fell 0.65% year-on-year in August. Compared with the 2.8% slump in July, this bodes rather well for sellers.
Indeed, old investors seem to have returned and new investors have emerged, who are only too eager to take full advantage of the currently spluttering value of the pound. Moreover, some of the suspended retail property funds have begun to reopen. Last week, fund manager Columbia Threadneedle announced it would join other major players in the industry in lifting the suspension in trading of its UK property fund. Such news will doubtless come as a huge relief to retail property owners in the commercial property sector.
This begs the question, was the forecast of London’s post-Brexit commercial property market overblown?
Plenty of property and investment experts seem to think so. But whatever the answer, the reality is that now is a great time for London-based, commercial property owners to take action. Market value is rising quicker than it has in years, and it could only be a matter of time before it peters out or dips again.
Are you a commercial property owner? Consider Leasing to a Religious Institution
If you’re a commercial property owner and contemplating your next move now that the immediate impact of Brexit has subsided, consider the value in letting your property to a religious institution. Church and Mosque tenants make for excellent bets. With gentrification still sweeping its way across London, many religious organisations are being pushed out of their communities. As a result, more importance is placed on finding a suitable location, rather than the specific facilities a building offers.
Your property needn’t be a traditional church, mosque or temple; ex-offices, conference rooms and even warehouses can be adapted to suit the needs of a religious institution. What matters most is that the property is within reach of its local community.
We specialise in bringing commercial property owners and such religious institutions together. It’s a match made in heaven. Commercial properties aren’t left empty and unused, while important, community-based congregations can be accommodated.
Get in touch via our Contact Page if you’re ready to cash in on the rising value of UK commercial property and would like to start a conversation with us.Tags: Brexit, commercial property owners