Property seminar attendees predict it will take the property market up to three years to recover from the current economic recession

The seminar, which was held at Trinity Park, was designed to give delegates the professionals’ thoughts on the current state of the property market, some legal issues arising from it and recent related tax matters.  At the end of the seminar, delegates were invited to give their own views on the property market in the form of a written survey. 

Two thirds of those who completed the survey predicted that it would take the property market more than two years to fully recover, with over a third suggesting it could take four years or more. Delegates were also asked if they felt property prices had reached their lowest point but were undecided as to whether this was the case.

Other results show that two thirds of the audience felt the Government should be doing more to help the market, with three quarters suggesting that the Government should scrap empty property rates.

James Dinwiddy, a partner at Birketts LLP, gave delegates the following advice: “In these difficult times property transactions do not run as smoothly as in the boom years.  It is the contract, whether a lease or another form of agreement, which will govern the relationship between the parties and the remedies open to them should a difficulty arise.  Anyone who fears that they may be heading for a dispute should review the contract as early as possible and take advice on it and the unexpected twists implied by case law or statute.”

“The commercial investment market consists of the ‘haves’ and the ‘have nots’; those with funds and those without.  This is causing a significant yield gap between prime property which is attracting sovereign wealth funds, pension funds and insurance companies and secondary and tertiary property where the traditional purchasers are struggling to raise capital.  Rent levels will be under stress for some years to come as tenants have the upper hand in negotiations.  The recent bounce in the residential market has ended for the moment and pre-election uncertainty will have an impact on purchaser’s confidence.  Lack of house building over the past two years will almost certainly result in shortages in years to come helping to underpin value.  The mad buy to let boom is finally over and is unlikely to return on the same scale in the foreseeable future” commented Mark Sargeantson of Fenn Wright.

Peter Harrup, a partner at PKF (UK) Ltd, ended the seminar with his final thoughts - “The property sector has been hit hard over recent years and I only hope that this is borne in mind when Government looks around for ways to increase tax revenues over the coming years.”