54 property New Year – new market?
Will 2014 be any different for the Thames Valley property market than the past five years? In our opinion, probably yes, however it remains location driven. Across the Thames Valley there is disparity in market activity and tenant’s buying power varies in different locations which is creating micro markets, writes David Barden, associate, Vail Williams LLP
The second half of 2013 witnessed an increase in activity in the Thames Valley and some would say the start of the property market recovery. Barring another economic crisis, we believe this is likely to continue into 2014. So what does this mean for tenants?
As the market continues to improve, availability of property will reduce as property is either let or sold. There have been relatively few new developments in the past five years which means that availability will not increase in the short term.
Increasing demand and reducing availability is likely to see greater competition for buildings and landlords are likely to get more demanding with lease terms such as inflated rent, reduced rent free periods and longer lease length. We have already started to see this happen in office locations such as Reading and Maidenhead.
Vail Williams have represented numerous tenants in the Thames Valley market over the past five years and seen the change in tenant’s buying power. Going back 12 months, many
Romans named best agent in the region
Independent estate agent Romans has won the Best Agent Thames Valley Regional Award for the second year running at the prestigious Relocation Agent Network’s Annual Conference.
Romans also walked away with the Customer Relocation Award for the second time; awarded to the agency that generates the greatest number of successful referrals through helping relocating buyers with moving in and out of the area.
Vincent Courtney, residential sales managing director, said: “We are very proud to be named the region’s best agent again; these awards recognise the hard work and combined effort of everyone at the Romans Group over the past 12 months.
“The awards are fantastic recognition of the high levels of customer service we provide and clearly demonstrate to our buying and selling customers that we are one of the Thames Valley’s leading estate agents.”
This year’s event was Relocation Agent Network’s 20th National Conference. To celebrate, the day ended with a glittering
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black-tie awards dinner, which was hosted by comedian and television presenter Dara O Briain at the Park Plaza Riverbank Hotel, London.
Richard Tucker, Relocation Agent Network’s managing director, said: “Romans’ outstanding customer service, independent business initiatives, local market share and commitment to our Network principles means that this award is thoroughly deserved. Congratulations to all the team.”
Members of the Relocation Agent Network, such as Romans, assist customers when they plan to relocate to another area of the country. Their local Network agent can recommend that the relocating area’s local member assist in their move to the new location.
landlords would have accepted a zero increase in rent at rent review and even rent reductions at lease renewals. Now there is a feeling that the market is improving and landlords are in some cases seeking increases. This leaves tenants feeling they have less power to negotiate and a fear their property expenses will grow to a level they can’t afford.
Before tenants start despairing, it would be wrong to say that these market conditions are being witnessed across the whole of the Thames Valley property market. In certain markets such as offices in Slough and Bracknell, there is still an abundance of availability which will need to be absorbed before we see a dramatic change in the market dynamics everywhere. Tenants have options when it comes to negotiating with their landlords and having expert advice is key to keeping costs down.
To answer the initial question “What does this mean for tenants?” We would say that every market location and property type is different.
Osmond buys the Great House hotel in Sonning
SCP Hotels, a new company headed by multi- millionaire Hugh Osmond, has bought the Great House hotel at Sonning in Berkshire for around £5 million.
Located on the banks of the River Thames, the 50-bedroom hotel will become the sister property of The Swan at Streatley, another riverside hotel in Berkshire bought by Osmond in November 2012, off a guide price of £6m. Osmond has a fortune of £240m, according to The Sunday Times Rich List 2013, which he has largely made through the flotation of Pizza Express and Punch Taverns.
The Great House hotel, which was previously owned by Gordon Currie for 25 years, has two restaurants, a bar and modern conference suite.
SCP Hotels is now expected to go on to make further hotel acquisitions.
Osmond commented: “We are looking forward to developing our hotel and restaurant concept over the next few years. The company has plans for substantial future investment in the Great House, which it views as a wonderful opportunity in a superb location, supported by a loyal and highly- capable staff.”
Dominic Mayes, head of Knight Frank hotels team, which advised on the purchase, said the company is looking forward to working with SCP Hotels on future similar acquisitions.
THE BUSINESS MAGAZINE – THAMES VALLEY – FEBRUARY 2014
It is now more important than ever for tenants to get the right advice, have up to date market knowledge and a good negotiator when entering lease negotiations. This can potentially save thousands of pounds over the duration of a lease.
There are still opportunities to make savings on property costs but tenants must be proactive, as the market improves.
Details: David Barden 07799-760323
dbarden@vailwilliams.com www.vailwilliams.com
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