As you will see from the attached Annual Update, the Allsop Private Client Team has experienced some real “hot spots” in the private client arena this year notably neighbourhood shopping centres, retail with disused or vacant upper parts, mixed use buildings with Permitted Development potential and the alternative sectors such as nurseries, petrol stations and hotels where the long unexpired terms appeal to the private investor.
There is no doubt that the weight of money in the private market and the availability of bank debt has diminished as the year has gone by, however, despite this we have seen a surge in demand for the above and as our market update demonstrates, it has not been uncommon to receive in excess of 8 formal offers for assets of this nature.
Despite all the gloom and uncertainty in the political arena which has leaked into the property market there has been some clear successes within the industry. Since its formation in 2014, the Private Client Team has gone from strength to strength and grown annually both in terms of transactions and sales volume. 2018 has seen a 14% drop in the total value of sub £8m sales in the entire property market (£5bn to £4.3bn) whereas the Allsop Private Client Team has seen a jump of 16% (£240m to £286m) and the total number of transactions rose to 81 (1.5 per week).
Our success is based on the ability to price the sales accurately, understanding each individual asset and a targeted marketing approach with the use of our unrivalled access to a large mailing list of private clients if necessary (circa. 100,000).
Where is the private market going in 2019? So much is hanging on the outcome of Brexit that it is difficult to make any predictions. All we can be sure of is that secure income/defensive stock will continue to be in high demand and that investors will use the uncertainty in the economy to seek opportunities where possible. If a Brexit deal can be agreed by all sides in Q1 2019 then we would be hopeful that confidence will return to the market and bricks and mortar will prove a popular asset.