AICPC News Article
COMMERCIAL PROPERTY VIEWPOINT December 2015
COMMERCIAL PROPERTY VIEWPOINT December 2015
For Wiltshire Business
By Andrew Kilpatrick, BSc FRICS ACIArb IRRV,
Managing Director, Kilpatrick & Co, chartered surveyors
By the time you read this, we will be in the early December pre-Christmas rush when everyone tries to get property deals completed before the big festive shut down! As I write this in mid November, the latest business Outlook survey produced by Markit reports UK business confidence to have waned in the Autumn to the weakest level in 2 years, with expectations in both the manufacturing and services sector being moderated. However, the UK still has the brightest outlook over the major economies monitored, with business confidence underpinned by confidence in the UK economy, partially linked to an ongoing improvement in the UK property market and partly by attempts to grow export markets. This national survey supports the recent regional survey produced by Business West, who also reported slower growth in the South West in Q3, 2015. However, whilst growth is slower than earlier in 2015, there is still positive growth and businesses are still confident, although there are worries over a global economic slowdown, weaker Chinese growth, the strength of sterling, the impact of the living wage and new pension legislation on costs, falling government spending and a continuing slump in the oil and gas sectors. The big unforeseen factor in 2015 has been the impact of mass migration and the resulting costs and impact on the Eurozone, which has added to the woes of already struggling economies in Greece and other southern European countries. The UK has not been immune from this challenge with already cash stretched local authorities suddenly having to find funding for migrants. With no clear strategy apparent one wonders where it will all end! So with such uncertainties, it is hardly surprising businesses are being more cautious in their outlook. Next month I will look back over 2015’s property market, which has been good. Meanwhile I am pleased to see the proposed new food court at the Brunel has now received planning consent and there are already a number pre-lets agreed.
Kilpatrick & Co specialise in commercial property and can be contacted at Curtis Court 73A Commercial Road Swindon SN1 5NX 01793 643101 E:post@kilpatrick-cpc.co.uk
post@aicpc.co.uk