Residential Investment Property

London commercial property market in recovery

Confidence is finally beginning to return to the UK commercial property market with signs indicating that the UK economy is now past the worst of the recession and moving nearer to genuine growth.
The residential housing market led the commercial properties sector into the recession therefore, news that residential activity is increasing is welcome relief to the UK property industry as a whole.  This combined with falls in capital values and the fact that tenant demand is starting to slowly increase means the future for UK commercial property suddenly looks far less bleak than it did six months ago.
This shift is most apparent in the central London commercial property market where sales have been steadily increasing over recent months.  Prime property prices in London have increased for the second month in a row and evidence shows that it is these quality properties that have really retained their value despite the recent economic conditions.  This is backed up by the fact that the strongest performing sales have been for prime real estate in locations such as Mayfair and Marylebone.
Despite the recent changes and widespread acknowledgement that UK commercial property is a compelling investment opportunity the recession is not yet behind us.  The outlook is now far more promising for commercial property owners however they still need to find effective means to get through the next twelve months.  Landlords are being extremely resourceful.  As well as decreasing rents and increasing tenant inducements they are also looking to new ways of getting the most out of their commercial property.  Landlords that are adaptable and reactive to new market trends are the most likely to remain successful.  
Unemployment has now officially overshot the two million mark therefore there is an increasing amount of potential tenants that are claiming housing benefits.  These tenants are generally semi-skilled workers who have good credit scores and references but are out of work as a result of the recession.  Adaptable landlords are asking local councils to recommend housing benefit tenants for their properties.  Other areas where commercial property landlords are diversifying include student accommodation and some are even looking into leasing out their properties unused parking spaces where they can earn on average an extra £3,200 a year.

About the Author:

Matt Grimes is a commercial property agent in London and has considerable experience in the industry after working in the commercial property sector for over twenty years. He has written numerous articles regarding the commercial property area and is seen as an authoritative figure in the industry.