NEWSSUMMER 2011ISSUE 4

During the past 6 months we havecontinued our structured expansion andhave recruited Paul Dean at our ManchesterOffice and Jody Lauder at our recentlyopened Preston Office. Both of theseappointments form part of our long termstructured expansion plan, which involvesinvesting in high quality people to drive ourbusiness forward in these challengingtimes.

Hello & welcomeThere has been a buoyant start for the privaterented sector in 2011 with growing levels oftenant demand, rising rents andstrengthening yields. A recent report by theDCLG published in February shows that thenumber of households renting privately hasrisen by one million since 2005 / 2006 from2.4 million to the current level of 3.4 million.The private rented sector now accounts forapproximately 15.6% of all households inEngland and the Government social housingreforms are likely to add to this.

The proportion of landlords reporting growingtenant demand continued to increase duringthe first Quarter of 2011, with 49% reportingincreased demand and 44% stating thatdemand was stable. The average void periodalso fell for the third Quarter in a row to 2.8weeks a year.

The availability of mortgage finance declinedbetween the final Quarter of 2010 and the firstQuarter of the New Year, although there wasa difference between the availability of financefor professional Landlords and small scaleLandlords, with the Buy-to-Let markettypically favouring Landlords with smallerportfolios.

Yields continue to increase and in the fourthQuarter of 2010 reached 6.2%. ProfessionalLandlords still perform better in this sector,with yields around the 6.5% mark. Theaverage gearing for rented property was 41%.

Generally, the availability of finance forLandlords to invest in a private rented sectorstill remains limited and this shortage needsto be addressed in order to facilitate futureexpansion of the sector.

Hot TopicWe have significantly expanded our teamand office network, which will furtherimprove the service we provide to ourclients. It is our highly skilled andcommitted staff and management, whichhas facilitated this continued growthmaintaining and improving standards whilstservicing a growing client base.

Petty Commercialhas appointedChartered SurveyorPaul Dean to join itsManchester basedoffice.

The team specialises in all aspects ofcommercial agency work includingdisposals and acquisitions. With clientsincluding major corporates, developersand property funds, Paul will oversee awide portfolio across the region.

Paul’s experience has been gleaned with

roles at Lambert Smith Hampton, Ask

Developments and CB Richard Ellis where

he carved himself a solid reputation in the

property arena serving clients across the

North West. Bringing a wealth of

experience to the table, Paul’s varied

experience, knowledge of business

development coupled with sales and

marketing was also a key driver in his

appointment. His most recent role

involved surveying properties to

determine their suitability for the

installation of Eco technology. He has

excellent knowledge of the local and

regional market and will provide expert

opinion on the viability of locations prior to

acquisition.

Paul comments: “I am delighted to bejoining the Petty team which has anenviable reputation in all aspects ofcommercial property. I feel that my skillsacquired in previous roles and myknowledge of the regional property marketwill bring a new dimension to the existingnetwork. Manchester has a vibrantproperty portfolio and I am looking forwardto the challenges that this will bring.

“The market is tough without a doubt butour size means we are able to offer aflexible and cost effective service thatcertainly doesn’t compromise on results.”

Jody joins thePetty’s team, fromEdwin ThompsonLLP, with a wealth ofknowledge andexperience in

professional matters and commercialagency. The appointment forms part ofthe long term structured expansion planto drive the business forward in whatare seen as challenging times.

Jody’s remit is to further develop the

commercial brand in Lancashire with a

clear focus on Preston from the firm’s new

offices at Fishergate Court. Jody, who is a

qualified member of the Royal Institution of

Chartered Surveyors, will be developing the

interests of clients, helping them grow,

develop and manage their property

business interests, handling commercial

leases, rent reviews, lease renewals,

valuations and Expert Witness work.

With over ten years property experience

Jody’s time served working with other

national practices including Sanderson

Weatheralls and GVA Grimley will enable

him to call on a substantial depth of

commercial market and local area

knowledge.

Jody added: “I amdelighted to be joiningsuch a senior and wellrespected team in arapidly growingbusiness. It is an excitingtime to be joining such areputable firm with lotsof excitingdevelopments and arenewed confidence inthe market.”

Jody LauderPaul Dean

SOLD ON BEHALF OF GKN - JULY 2011

Market Overview And Finally...We do hope you have found ourNewsletter informative and will not beoffended if we send you the next editionin the Autumn. If you do not want toreceive it, please let us know by e-mail.

If you require any property advice, orassistance from Petty Chartered Surveyors,please find below our contact details.

Head OfficeImperial Chambers, 32 Manchester RdBurnley BB11 1HHt. 01282 417778 f. 01282 417776

ManchesterPiccadilly House, 49 PiccadillyManchester M1 2APt. 0161 212 1367 f. 0161 212 1368

LondonHigh Bridge, Oxford Road, UxbridgeLondon UB8 1HRt. 0189 587 6303 f. 0189 587 6300

LiverpoolIl Palazzo, No 7 Water StreetLiverpool L2 0RD t. 0151 330 3646 f. 01282 417776

LeedsProspect House,32 Sovereign StreetLeeds LS1 4BJt. 0113 389 1057 f. 0113 389 1058

Newcastle116 Quayside, Newcastle NE1 3DYt: 07836 623482

Preston1 Fishergate Court, FishergatePreston PR1 8QFt: 07836 623482

In the commercial property market momentum appears to be running out ofsteam after a sharp rebound in capital values in the sector during the earlypart of the year.

Much of the improvement, both from an investment and an occupier stancehas been in London.

The monthly trend in commercial property rents and capital values isessentially flat at the all property level according to the IPD data.

The RICS Q1 2011 UK commercial property market survey indicates that atthe all property level demand is growing, albeit moderately, but so isavailability.

Indeed availability has been increasing consistently in recent months, whiledemand has only recently started to recover having contracted sharplyduring 2008 and 2009. As a result rental expectations remain negative,although a lot less so than in previous Quarters. Rental expectations havebeen negative since Q4 2007.

DealsPetty Chartered Surveyors either advised or negotiated the following overthe last few months:

West Bromwichdetached town centre public house recently sold at £200,000.

Shropshiresmall holding with three bedroomed detached house, outbuildings and 12.5acres of pasture, recently sold at £445,000.

Blackpoolsea front, 45 bedroom hotel, recently sold at £885,000.

Hertfordshire3,000 square foot modern warehouse unit recently sold at £300,000

Northumbria9 hole golf course with driving range and club house, recently sold at £450,000.

Greater Manchesterthree surgery dental practice with freehold town centre surgery and NHScontract value of £260,000, recently sold at £430,000.

Greater Manchester38 room student block recently sold at £1.1m, net initial yield 8.5%.

Burnleyon behalf of landlords Sandybays a letting was agreed in respect of the fourthfloor at Stephen House an office extending to 5600 sq.ft at £5.50 per sq.ft.

Boltonacting as agent in respect of a 1.5 acre site developers were introduced agreeingan option, subject to obtaining planning consent for residential development.

Forthcoming Events...Manchester property charity lunch to be held in the Autumn in memoryof our much beloved colleague David Thorp, details to be releasedshortly. www.pettycommercial.co.uk