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London Pub Sales News: Kensington and Chelsea pubs to be saved from threat of closure

Fri, 20 Apr 2012 10:49:54 +0100

Rising living costs, unemployment and an inability to get a handle on debts means that increasingly tenants are struggling to pay their rent on time each month.

According to new research from the Association of Letting Agents (ARLA), four in ten (41.2 per cent) of estate and letting agents have seen an increase in the number of tenants unable to meet their rental payments to landlords during the past six months.

This has resulted in many struggling tenants attempting to haggle down the cost of their rent. The practice, ARLA reports, is most common in the North East of England and the South West, but virtually unheard of in London where rental values are continuing to rise.

Ian Potter, operations manager at ARLA, said that because unemployment is likely to rise many more tenants will find meeting the commitments difficult and this coupled with a rise in mortgage rates could lead to landlords also finding times hard.

"At worst, this double whammy may result in landlords defaulting on mortgages and tenants being forced to move out of a property," he said.

Tim Hyatt, ARLA President, added: "This situation highlights just how important it is for both landlords and tenants to carry out thorough research and, where possible, checks before signing a tenancy agreement."

The comments echo recent findings in the latest BTL index from LSL Property Services.

The index shows that during January this year the average home rental cost rose by 0.1 per cent to £712.

This equates to an increase of £30 to average tenant, a figure that many of those already struggling with debts and rising household costs simply cannot afford.

Indeed, LSL Property Services say that 10.7 per cent of all rental agreements were paid late or not at all by the end of January and the total value of the UK's arrears stands at £300.3 million.

Change of Use News: Villagers get behind application to convert old pub

Thu, 05 Apr 2012 13:22:39 +0100

Residents in a village near Preston have come together to support a planning permission application to convert a closed down pub into a swanky new restaurant.

The Farmer's Arms in High Walton closed its doors in 2009, but an application for change of use has already been approved by South Ribble Council. Now villagers are supporting a new application for the building to be extended.

Villagers have written to the council and expressed the backing for the scheme, which was put forward by Callum Muhammad.

According to the Lancashire Evening Post, resident Lorna Jones wrote: “I have viewed the plans and believe the use of this building as a restaurant would be an excellent idea and benefit the area greatly.

“At present, the empty building is of no use and I would welcome a restaurant in its place.”

Under the plans a two-storey extension will also be added to the rear of the premises.

Government urged to help developers convert commercial properties to residential

Fri, 17 Feb 2012 13:20:48 +0000

The government should look to put schemes in place to help developers convert unoccupied commercial premises into much needed housing in certain parts of the country.

This is according to the National Association of Estate Agents (NAEA), which believes quick thinking developers should be given the support needed to transform the UK’s town and city centres from rows of empty shops to classy residential developments.

Peter Bolton King, chief executive of the NAEA said: "Commercial property owners are facing high business rates for buildings that no-one occupies. Therefore, in the right circumstances, converting these buildings for residential use could have an aesthetic and economic benefit.

“However, such renovations are not simple undertakings. We advise that a thorough evaluation of the work involved is carried out beforehand to avoid additional cost burdens.”

He added that city centre housing developments often provide better than standard yields because close proximity to amenities adds extra value to any project.

The NAEA, however, published a list of dos and don’ts for people considering moving into the central developments market.

Top of the list was weighing up if the cost of converting an existing commercial plot was effective when compared to building a new property from scratch on a separate site.

It also suggests that all legislation around “change of use” is thoroughly checked as building extensions or changing the front of shop may be subject to additional planning permission requirements.

Lastly, be prepared to wait. Some local authorities have a rule which states that commercial property must have been on the market for between six and twelve months. This is to show that there is no market for it to remain in commercial use before permission to convert is granted.

You are unlikely to see many change of use applications in prime central London though as Jones Lang LaSalle has forecast a buoyant year for the sector in that part of the capital.

UK Pub Sales News: Gloucester pub on sale for £30,000 leasehold

Mon, 20 Jun 2011 17:10:18 +0100

Property investors looking for pubs for sale might be interested to hear that the Fox & Elm in Tuffley, Gloucester, is on the market for £29,950 leasehold.

The Citizen reported that the premises include gardens, a three-bedroom flat and a dining room, with rent set at £16,000 for the next two years.

A skittle alley, children's play area and large car park are also part of the pub, which was last refurbished in 2004.

It also has 14 years left on a renewable Marstons Inns lease, while prospective investors might be pleased to hear that it turned over £180,000 in the last financial year.

Councillor Gerald Dee told the newspaper that it is hard for the pub to compete with cheap alcohol sold in supermarkets.

"I would like to see it continue as a successful pub but I am not sure if it could unless they started serving food," he added.

The Campaign for Real Ale noted that the site has hosted a pub for at least 60 years, having been known as the New Inn, the Blinking Owl and Fox & Elm over time.

UK Pub Sales News

Planning Permission News: Square Mile 'could suffer' if offices are turned into homes

Fri, 17 Jun 2011 10:40:53 +0100

Government plans to overhaul the planning system could see more office space in London being turned into residential properties.

According to city planning officer for the Corporation of London Peter Rees, the Square Mile and other renowned business districts could lose their power to attract international organisations and investment if they are not safeguarded.

Speaking at a British Property Federation conference, he is expected to say: "The cyclical nature of the property industry means that if developers were to turn offices into residential blocks when times were tough, the City's ability to attract and house new firms when market conditions improved would be seriously diminished."

Such changes to the planning system could "dilute the concentration of offices", making it harder for companies looking for investment properties in London to find commercial space in the Square Mile, Mr Lees added.

His comments come after the Institute for Public Policy Research revealed that the UK could face a shortfall of 750,000 homes by 2025 because the construction of new build properties is at its lowest peacetime level since the 1920s.

Planning Permission News

UK Pub Sales News: Listed pubs for sale in the West Country

Thu, 16 Jun 2011 17:09:29 +0100

Property investors looking for pubs for sale might be interested to learn that two special properties in the West Country have come on the market.

ThisisDevon.co.uk reported that the Grade-II listed Ashill Inn in Culm Valley has been put up with a value of £295,000.

The freehold includes a restaurant, ground floor bar and commercial kitchen, along with two double bedrooms and a pool room.

Meanwhile, the Swindon Advertiser stated that the Queen's Head in Dunkirk Hill, Devizes, is also on the market.

The pub, which is Grade-II* listed, has been granted planning permission to undergo a change of use and be converted into a house.

Paul Redman, joint owner of the empty pub, told the news site: "We spoke to agents about it reopening as a pub but they were recommending lower rents for it and there were better conditioned pubs coming on to the market. Everyone was telling us that other pubs would survive before this one. It was obvious no one would want it."

He noted that turning the pub into a home raises its value and would allow it to be repaired properly.

"Structurally the property is pretty sound. There are no major defects but it does need a lot of work done on it," Mr Redman added.

Steve Oliver, negotiator at Paramount Investments, commented: "Although I'm sad to see another pub close, I'm pleased that this old building will be restored for future generations to enjoy the outstanding architecture."

UK Pub Sales News

UK Pub Sales News: Travelodge to target former pubs for sale

Mon, 13 Jun 2011 16:48:37 +0100

Budget hotel chain Travelodge will be seeking former pubs for sale in order to expand its operations by 100 new small hotels.

The company unveiled plans to develop Metro accommodation, which would see smaller sites containing between 20 and 40 rooms each being launched in prime locations.

Office space in London is one area Travelodge is looking to develop into hotels, along with old pubs, derelict cinemas and theatres, disused business parks and retail outlets.

Guy Parsons, chief executive of the chain, commented that a pilot scheme in Edinburgh showed how successful the Metro model could be.

"Downsizing our hotel building requirements will open hundreds of development opportunities for us. This will enable us to expand quickly and meet the growing demands from consumers who want low cost and good quality accommodation in prime locations," he added.

Meanwhile, Travelodge has also announced plans to link up with pub companies, including Greene King, Mitchells & Butlers and JD Wetherspoon, as part of a £100 million expansion project.

UK Pub Sales News

Property Repossession News: Restoring outdated homes 'is a savvy move'

Wed, 18 May 2011 17:07:18 +0100

Landowners who have earmarked their investment as a property in need of restoration could be carrying out a "highly profitable manoeuvre", according to Build It magazine.

Anna-Marie DeSouza, editor of the publication, noted: "If you are investing in your property to make it more habitable or boosting its size for your own future use, this is a far more cost effective option than selling your house and purchasing a new property in the current market."

She explained that making improvements to properties needing modernisation in order to raise their value is a "savvy move", but insisted that homeowners should ensure the amount they are investing can be sufficiently recouped when the abode is sold.

Ms DeSouza's comments follow research from FrogTape showing that over half (54 per cent) of males admit to cutting corners while decorating their homes, while a fifth have botched a DIY task to the extent where they had had to call in outside help to fix it.

Property Repossession News

Property Repossession News: Empty home plans welcomed

Wed, 18 May 2011 17:05:19 +0100

Government plans to bring more empty properties back into use have been welcomed by a charity, those with properties suitable for redevelopment might have heard.

David Ireland, chief executive of Empty Homes, said communities minister Andrew Stunell's comments about the number of long-term empty homes being "a scandal" are encouraging.

"More encouraging than that is that they are actually doing things [about the number of empty homes], which is great," he noted.

Initiatives such as the new homes bonus, which incentivises councils to build more new properties, have been extended to include rewards for local authorities which manage to bring unoccupied homes back into use.

"There is a real incentive for councils to get this done because it not only provides homes; it actually provides an income stream for them as well. These are very encouraging times," Mr Ireland added.

Mr Stunell this week (May 16th) said around 700,000 more people could have a home of their own if the 300,000 empty properties in the country were filled with average sized families.

Property Repossession News

Building Regulations news: Planning system reforms 'must be clarified'

Tue, 17 May 2011 12:57:15 +0100

Government plans to improve the house building system need to be clarified, the Home Builders Federation has stated.

Steve Turner, head of communications at the organisation, commented: "We have got a completely new planning system that is currently being developed and we still are not 100 per cent aware of how it is going to work.

"Local authorities are still unaware and not clear in terms of how it is going to work, so there is a lot of confusion out there."

Mr Turner noted that there is "some uncertainty" over how communities will use their new powers and called for the government to monitor the situation and act immediately if the new planning system fails to live up to expectations.

His remarks come after the Office for National Statistics revealed that the total volume of construction output in the first quarter of 2011 fell by four per cent compared with the final quarter of last year.

Building Regulations news

Change of Use News: Former pub to be transformed into education centre

Fri, 25 Feb 2011 17:06:20 +0000

A former pub is set to experience a change of use after permission was granted to convert it into an Islamic education centre.

The Blackburn Citizen reported that the Dog Inn will soon house a madrassa for up to 20 children.

However, some residents nearby have raised concerns of high levels of traffic as parents come to drop off or collect their children from the education and cultural centre.

To tackle this, Blackburn with Darwen Council planning chiefs have granted the development a 12-month temporary permit, during which traffic levels will be monitored.

Councillor Dave Smith told the newspaper: "It's a better use of the building than a very busy pub."

Meanwhile, the former Clicker pub in the Headlands area of Northampton is also the subject of a change of business use proposal, with the Gulzar-e-Madina Welfare Trust submitting an application to turn it into an Islamic community centre.

The application is due to be heard at next month's Northampton borough council planning meeting, the Northampton Chronicle and Echo reported.

Change of Use News

Change of Use News: Change of use applications 'are on the increase'

Fri, 25 Feb 2011 17:02:07 +0000

Planning applications concerning change of use are on the rise, according to research from a law firm.

EMW's figures show the number of change of business use submissions ï»¿increased by nine per cent to 6,200 in the second quarter of 2010 and grew ten per cent to 6,800 in the following three months, Building.co.uk reported.

"The jump in planning applications for change of use shows that landlords and developers are now willing to take action and commit resources to try and get into the segment of the property market where there is the most demand locally," explained Giles Ferin, planning specialist at the commercial law firm.

Owners of commercial property in London and other parts of the UK could run into difficulties when local authorities want to "preserve the mix of different uses", as it means they are sitting on vacant property because there is no demand for that type of building, he added.

The research comes as Nottingham City Council announced landlords in the city will have to obtain planning permission if they want to open their rental property up into a shared house for up to six unrelated people.

Change of Use News

Change of Use News: Lincoln pub to be turned into flats

Tue, 15 Feb 2011 16:43:31 +0000

A former pub is set to undergo a change of use and be developed into a block of flats.

The disused Monks Abbey pub in Lincoln has obtained planning permission to be transformed into four flats, which will then be let out to students when construction is complete, the Lincolnshire Echo reports.

Andrew Wilding, planning agent for the site, said in his application that a decline in trade made it difficult to find an alternative use for the building.

"It is big enough to make a generous family home, but the area is too noisy and full of traffic fumes," he pointed out.

"The lack of reasonable car parking precludes the use as offices, while the present economic difficulties make it unlikely anyone would want the premises for retail."

He said this particular area of Lincoln appears to be flourishing, so the building could do well to contain two four-bedroom flats, one three-bed apartment and a two-bed flat.

Change of Use News

Change of Use News: Pub to be redeveloped into supermarket

Wed, 02 Feb 2011 13:06:57 +0000

An award-winning pub will be subject to a change of use if plans for a new supermarket go ahead.

The Wimborne-based Royal Oak in Dorset is located on land that has been assigned for redevelopment in a bid to regenerate the area, the BBC reported.

Hill Richmond, the landowner, told the news provider: "The area has been earmarked by Bournemouth council for a supermarket and convenience shops, with an additional 150 car parking spaces."

Martin Burke, director of the company, said: "We are sorry that the pub land is needed to carry out the essential highways improvements for this redevelopment, but we hope that our scheme will help regenerate the Kinson area for the benefit of local people, who will not have to travel further afield for their weekly shop."

The Royal Oak has been named winter pub of the season by the local branch of the Campaign for Real Ale and is nominated for the Pub of the Year Award.

Change of Use News

Change of Use News: Disused pub transformed into health centre

Wed, 02 Feb 2011 13:04:43 +0000

A disused pub has undergone a change of use and has now reopened as a health centre.

Formerly known as The Junction, the Pudsey-based Active Health Centre has been taken over by chiropractor John Turner, the Yorkshire Evening Post reports.

Mr Turner commented: "It was a bit like the Marie Celeste when we moved in, with lots of half-empty beer glasses lying around.

"We spent months stripping layers of wallpaper and getting rid of the fake Victorian decor but it's been worth it. The location is brilliant and we have people of all ages coming in. My oldest customer is 94 years old and the youngest a few months old."

The change of business use occurred after the pub became a victim of the recession and opened again to the public at the end of 2010.

The building itself was erected in the eighteen-thirties and now hosts health treatments such as massage, exercise classes and nutritional advice sessions.

Change of Use News

Change of Use News: Derelict pub to be redeveloped

Mon, 31 Jan 2011 17:05:55 +0000

An old pub site has undergone a change of use and is set to be transformed into affordable housing.

The derelict Willows pub site has just been given planning permission to have 22 new homes built on it.

Situated near Morpeth, the property investment will be funded by the Homes and Communities Agency (HCA) and developed by Two Castles housing association.

Each of the new homes will be the first in Northumberland to achieve level four of the government's Code for Sustainable Homes.

Alan Davies, investment and regeneration manager at the HCA, commented: "With a range of eco-friendly features, including energy-efficient solar panels, compost bins and cycle storage, the new homes will be a step up for greener living in Northumberland."

The news comes as the HCA announced a £2.4 million investment into a change of use development in Stockport, in which a former brewery is set to be redeveloped into an affordable housing programme.

Change of Use News

London Property Investment News: Commercial property in London 'sees strong return'

Wed, 19 Jan 2011 17:15:19 +0000

Commercial property in London and other parts of the UK has seen its strongest return in four years, according to research from Investment Property Databank.

The sector delivered a 14.5 per cent return in 2010, a significant improvement from the 2.2 per cent recorded the previous year, the organisation's monthly index showed.

Office space in London was one particular driver, with "a combination of global as well as domestic economic forces" fuelling this, managing director Phil Tily noted.

"A clear divide has returned to the UK property market - London versus the rest of the UK - which will be exacerbated as the impacts of the government's budget cuts take hold during 2011," he added.

Similarly, interest turned to buying a pub last year, Paramount statistics show.

Steve Oliver, senior negotiator at Paramount Investments, commented: "December was an extremely busy month for the Paramount Investment department with more than 30 properties exchanging contracts.

"There were a number of reasons for this - one was that vendors were more realistic in their aspirations on price. They also felt that with the VAT increases coming into effect in 2011 it made business sense to secure a sale now," he added.

In total, the property company sold 215 in the previous 12 months.

London Property Investment News

London Property to Rent: Filling empty homes 'could ease affordable housing shortage'

Fri, 14 Jan 2011 12:47:48 +0000

With the squeeze on affordable housing in London and other parts of the UK, the focus should be on ensuring empty homes can be turned into cheap property, Empty Homes has claimed.

David Ireland, chief executive of the campaign group, commented: "A lot of the problems of affordability are because there is just not enough homes overall. So creating more homes full stop would be extremely helpful."

He noted that the main priority "is actually getting more homes back into use", particularly in areas where there is a high volume of unoccupied buildings.

"There are greater proportions of vacancies in cities and towns in the north of England than there are in the south," he noted, referring to the popularity of property to rent in London.

"That is a bit of a generalisation but I think overall there is one of the highest vacancy rates in the north-west of England."

Mr Ireland's comments come after the Department for Communities and Local Government set out a range of incentives to get local councils to reverse the number of empty properties, including matching the council tax raised for every unoccupied home brought back into use.

London Property to Rent

London Commercial Property News: Construction market 'likely to be hit by spending cuts'

Fri, 24 Dec 2010 18:11:38 +0000

The state of the London property market reflects that of the construction sector, an expert has said.

Greg Pitcher, deputy news editor at Construction News, says the industry expects another tough year in 2011.

"Obviously, the public spending cuts are going to really kick in from April - in earnest they have already kicked in, but they will really get tough with the new spending review," he pointed out, claiming that the private sector recovery will be unable to "pick up that slack".

However, demand for office space in London and other parts of the UK is growing, as is the need for industrial property in London and other places, Mr Pitcher argued, meaning "there are certainly bright spots".

His comments follow the Federation of Master Builders' forecast that 11,400 jobs will be lost in the construction sector over the next ten years as a result of the VAT rise.

London commercial Property News

Property Repossession News: Empty homes 'should be brought back into use'

Tue, 21 Dec 2010 17:15:04 +0000

More effort should be made to bring back properties suitable for redevelopment into use, according to Empty Homes.

David Ireland, chief executive of the campaigning charity, commented that the need for affordable housing in London and other parts of the UK should spur the government into action on unoccupied properties.

"We have got a lot of empty homes and an awful lot of housing need," he pointed out.

"The house building rates at the moment are as low as they have been since the 1920s, so any other way that you can provide homes has got to be very, very important."

He argued that bringing vacant homes back into use is easier, cheaper and more environmentally friendly than building new developments and is a "pretty obvious" solution to the problem.

Mr Ireland's comments come after the latest Halifax Empty Homes survey revealed that the number of long-term vacant private homes in England has fallen for the first time in three years by six per cent.

Property Repossession News