Confidence High Amongst Businesses But Many Delaying Activity

The number of commercial property transactions is likely to increase back to levels seen at the end of 2014 once the uncertainty caused by the General Election is out of the way, says Irwin Mitchell real estate lawyer John Flathers.

Speaking to the Yorkshire edition of BQ magazine, John says that the sector is busy but adds “that there has been a slight cooling in the market.”

John, who heads up Irwin Mitchell’s Real Estate team in Leeds, said: “It’s nothing dangerous or dramatic but deal flow is not as steady as it was in the run up to Christmas.

“I’m getting the impression across the board that projects have continued running, but there is something that means it is not quite as buoyant.

“The election has got some influence over this. I think people are holding back to see what happens to the likes of stamp duty. I think there is just a note of caution, with not as many deals coming in with immediate plans.

“A lot of clients are looking to do things going forwards, but it has not come on as fast as we thought.”

Commenting on trends in land acquisition and bank lending, John says: “People are still buying up land around Yorkshire. Again the approach has changed, from buying brownfield in case it comes in useful to buying with a bit more of an immediate idea for its use.

“The banks are still a way off doing a speculative loan on it, but buyers know they can move it forward a bit more quickly and that someone will eventually come in for it.”

The full report in BQ magazine, including John’s article, can be downloaded here.