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MIp33-34_0110:MI 2008 15/12/2009 14:23 Page 5
Commercial Finance: News
33
Commercial
property
2010 looking tough for PRS,
investment
demand
says ARLA
Demand for commercial property
by funds and other investors is
While 2009 was a difficult year for "As demand rises, in particular why he seems to have
providing a good opportunity for
the entire property market, 2010 due to a lack of social housing, depersonalised the PRS, as the
real estate investment trusts (Reits)
looks likely to present an even there will also be mounting Government continues to evade
and other listed property
greater challenge for the private pressure on the sector to provide implementing measures to help the
companies to mount a startling
rented sector (PRS), according to good quality rental properties," says sector."
about-turn in fortunes.
the Association of Residential Ian Potter, operations manager at ARLA predicts that throughout
Letting Agents (ARLA). ARLA. "There has been little 2010 standards will become an even
Previously closed funds have re-
Yet there are also opportunities, commitment from the Government greater issue, as homeowners and
opened as private investors flock
in particular as availability of thus far on economic measures to landlords alike are encouraged to
back to the market while
lending begins to increase while help the wider industry meet make their homes energy efficient.
institutions and foreign investors
house prices are still historically property demand, but increasing Yet without incentives like tax relief,
also hunt for purchases. As a result,
low, enabling timely investors to demand should have a positive it will be difficult for an already
listed property companies are well
purchase properties for the buy-to- effect on the PRS, creating struggling sector to make the
placed to off-load assets they expect
let market. opportunities for new and existing necessary improvements.
to under-perform.
The residential rental market will investors and driving standards up. "The Pre-Budget Report was a
The Investment Property continue to stabilise in 2010, with "In a recent debate the Housing missed opportunity for the
Databank (IPD) has shown a 4.5 property oversupply decreasing due Minister displayed a lack of Government to show its
per cent capital value increase since to reluctant landlords leaving the empathy with those living in the commitment to the PRS - the boiler
the bottom in June this year, market, according to ARLA. PRS when he argued that it consists scrappage scheme, for example,
following a 45 per cent fall over two Evidence of increasing sales in of three million households - when should include rental properties
years. But this understates the sharp certain areas seems to indicate this it in fact consists of eight million and be part of Landlords Energy
rise in value of prime assets, notably trend. people. Perhaps we should question Saving Allowance (LESA)."
retail and central London office
assets with strong rental growth
potential.
NatWest and RBS to support SMEs
Recent interim reports from
British Land (NAV +1.4 per cent in
NatWest and RBS have announced reported on a regular basis. New support for start-ups
three months to the end of
new measures to increase support Renewal of price promise and The banks are presently supporting
September) and the London-
for their 1.2 million business committed overdraft over 2,000 start-ups per week,
focused Great Portland Estates
customers with the introduction of Early on when businesses feared which exceed levels seen in 2008.
(NAV +4.2 per cent over the same
a new SME customer charter. credit would be pulled, or rates To build on this success, NatWest's
period) have reflected the IPD’s
Whilst providing new ways of increased, NatWest and RBS were market leading start-up offer of
positivity.
offering support, the charter also the first to offer a combination of a two years free banking will now be
Patrick Sumner, head of property
extends existing key initiatives committed 12 month overdraft extended to RBS customers as part
equities at Henderson Global
already helping customers sustain and a price promise. After such a of the Bank's new SME charter.
Investors and chair of Reita, said:
and grow their business. positive impact, the new NatWest Peter Ibbetson, chairman, small
“The UK index is estimated to be
New SME charter and RBS charter includes a renewal business, said: "Access to finance at
trading at a 12 per cent premium
commitments of this unique promise for a fair prices sits at the top of many
right now, but this seems fair if we
As part of a wider organisational further year to all SMEs. business' wish list, which is why we
are right in thinking that NAV
commitment to openness and Fees capped per annum are extending our overdraft price
growth will be in double digits in
transparency, customers and key NatWest and RBS will become the promise and offering reassurance
the next 12 months. There is
industry bodies will be consulted first banks to introduce a 1.5 per and transparency on the fees we
differential pricing, with the
on commitments within the cent cap on overdraft and loan charge. At the same time it's
London office specialists trading at
charter, ensuring key issues arrangement fees per annum, for equally important we do all we can
20-30 per cent premiums, which
continue to be addressed. Progress businesses with a turnover up to to help develop new businesses by
may fairly reflect their potential.
against these commitments will be £25m. extending our free banking offer.”
”Reits are now in good shape
financially and geared into a
recovering market without the
CIOT calls for small business review
headache of a pile of uninvested
Responding to the confirmation business taxation. unincorporated) rather than
cash. The important thing in the
in the Pre-Budget Report that the He said: "This still leaves small leaving the prospect of higher tax
next few years is to add value for
increase in the small companies' businesses up in the air. rates up in the air and trying to
shareholders through active asset
rate of corporation tax will be "We have long argued that block perceived abuses with ever
management, new investment that
deferred, John Whiting, tax what is needed is a holistic more complex rules that are
plays to their competitive
policy director of the Chartered review that aims to set out a administratively burdensome.
advantages and measured, well-
Institute of Taxation, said it’s general plan for taxing small "It's time for a full review of
timed development.”
time for a full review of small businesses (incorporated and small business taxation."
www.mortgageintroducer.com January 2010 Mortgage Introducer
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