It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Wells McFarlane’s Directors: Jason Hercock, Andrew McFarlane Holt, and Trevor Wells.
Offices – Jason Hercock
I expect the office market to get progressively better in 2024. The gradual take-up of stock is likely to continue as interest rates stabilise, especially as most businesses now seem to have recalibrated their working practices post-Covid and identified long-term requirements. Offices in popular locations such as market towns and semi-rural business parks are the most desirable, and this is where most activity is happening. Well-advised landlords, with properties that are modern, energy efficient, well-connected and with somewhere to park, are capturing tenants and this is where the market has migrated. Those with draughty, cellular layouts and low EPC ratings will stagnate if not upgraded so we’re advising landlords of these properties to seek urgent advice from your agent about how best to market.
Industrial – Andrew McFarlane Holt
There is a significant supply/demand imbalance that I don’t see correcting itself quickly in 2024. Smaller industrial units are highly sought after; for every unit we have available at this end of the market we could probably let multiple times over. Unfortunately speculative development isn’t the answer alone. The sector needs urgent local or government intervention to free up the planning process to facilitate further development in this sector and the wider commercial property market.
Land, Planning & Development – Trevor Wells
One of the main considerations for 2024 is the mandatory requirement that from January, all new housing, commercial and infrastructure developments are required to deliver 10% Biodiversity Net Gain (BNG), resulting in more or better quality natural habitats than pre-development. These must also be maintained for at least 30 years. Now, not all BNG gains will be able to be made on-site, so there are options for developers to buy off-site units or credits to compile the 10%. Through our sister company, The Habitat Bank, we’re working with landowners and developers to facilitate this process and expect this to be a major shift in how development is planned and delivered.
With farming incomes suffering from the loss of BPS payments, and the introduction of delinked payments at a reducing rate, opportunities for landowners to use suitable land as a Habitat Bank site may offer much-needed additional revenue. We hope that government guidance on Agricultural Property Relief and general taxation for Habitat Bank sites will be positive so landowners can plan ahead. It looks to be an interesting time!
