East Midlands Commercial Property Market - Past, Present and Future

By Leicester Business Festival (other events)

Tuesday, October 31 2017 2:00 PM 4:00 PM

Three presentations will provide an overview of the current situation and trends in the Leicester, Leicestershire and East Midlands property markets, including the impact of Brexit. Comparisons within Leicestershire and the region will be provided about the supply and demand for premises, prevailing rental levels and innovative methods to investigate where there is over- and under-supply of commercial premises. Insights to support for property investment will be provided through a unique review of the UK property lending market

This event will be of interest to property developers, property agents, property finance professionals, policymakers and businesses that want to know more about the Leicester, Leicestershire, East Midlands and UK retail, office and industry property markets.

Results of analysis from more than 20,000 commercial property vacancy records in 2016 to 2017 will be described by Professor Paul Foley (Tech4i2). Detailed comparison of rental levels in different locations for different types of commercial property provides an insight to relative competitiveness in different areas. An innovative method of investigating over- and under-supply of commercial properties has been developed by comparing the number of properties on the market with the stock/number of different types of commercial property in the local market. This shows relatively low levels of supply of industry and office accommodation in Leicester and Leicestershire when compared with other parts of the East Midlands. Tech4i2 data also enables examination of how long properties are on the market before being let - thus enabling comparison of local demand for properties.

Chris Hobson, Director of policy and external affairs at the East Midlands Chamber, will provide an overview of the property requirements and concerns of the 4,000 businesses members of the Chamber located in Leicestershire, Derbyshire and Nottinghamshire. Key concerns and opportunities identified by the Chamber’s high-level Construction and Property industry sector forum will also be presented. Chamber views about an overhaul of the business rates system and prospects for the Leicester and Loughborough Enterprise Zone.

Results from De Montfort University’s influential 2017 Commercial Property Lending Report will be presented by Dr Nicole Lux. The report is regarded as the benchmark measure for the UK commercial sector and is used as an indicator of the appetite for lending and development. Highlights from the 2016 report showed a 17 per cent reduction in new loans, partly due to uncertainty prior to the Brexit referendum. The trend of new loan loan-to-value (LTV) ratios adjusting downwards continued in 2016. There was general caution regarding property values especially for prime property in London, and most lenders felt that lending at a maximum LTV of 60 per cent was prudent, in order to minimise potential future losses.

Confirmed Speakers 

Professor Paul Foley, Director of Tech4i2
Chris Hobson, Director of Policy and External Affairs at the East Midlands Chamber
Dr Nicole Lux, Senior Research Fellow, Demontfort University, Leicester

Mailing Address

Friars Mill, Bath Lane, Leicester. LE3 5BJ