Commercial property lending increased by more than 50% and reached a six-year high by the end of 2014. According to the recent British Property Federation (BPF) report, this was due, in part, to non-traditional lenders entering the market in what is now an extremely busy commercial sector.
Insurance companies and other non-bank financiers were responsible for 25% of new loans, and whilst these lenders have only been included in the data since 2011, their market share increased significantly in the reporting period. These lenders came to the market '...due to regulatory changes and business opportunities created by the withdrawal of banks from this sector'.
The study also revealed that outstanding debt on
commercial property declined over the twelve-month period to year-end 2014.
In addition to general debt reduction, the report states that distressed loans also fell by more than 50% helped by a robust property market and, more generally, a strong UK economy. At year end there was a more even share of outstanding debt between the 12 top lenders.
Intentions to lend at the end of the period were strong and more than 80% of providers expressed a commitment to increase their loan book.
In tandem with property values, loan to value ratios had risen to 70% or less and made up more than 75% of the overall outstanding debt.
On 15th April new Permitted Development rights came into force providing a green flag to convert storage and distribution buildings (B8), used for that purpose for at least four years prior to 17 March 2014, into residential dwellings (C3).
The announcement comes after protracted government consultation and forms part of the wider General Permitted Development Order (GPDO), overriding the necessity to submit planning applications for change of use as long as the property does not exceed a maximum of 500 square meters floor space.
However, as expected, there are caveats.
Owners and developers must first consult with their local regulatory authority to establish whether certain permissions and prior approvals are required. The Explanatory Memorandum to The Town and Country Planning (General Permitted Development) (England) Order 2015 states "The right is subject to prior approval process covering transport and highways, air quality impacts on intended occupiers, noise impacts of the development, risks of contamination, flooding, and the impact the change of use would have on existing industrial uses and or storage or distribution uses"
Caxtons is once again delighted to have won the coveted property industry award 'EGi Deals Winner Kent 2015'.
This award is based on the number of commercial property sales and lettings achieved in the preceding twelve-month period. When compared to the previous year, Caxtons' results showed a 120% increase in the number of completed deals. This is the fourth time in the past five years that Caxtons has received the award and strengthens its position in the market place, demonstrating that it consistently outperforms its competitors.
Against all the odds, Caxtons improved upon the high
level of activity it was able to maintain even during the difficult market conditions of the recession, and the Caxtons' Commercial Agency team remains extremely busy, having sold and let more commercial property than any other agent in Kent.