A strong industrial market in the North West has resulted in an increase in the development of distribution buildings across the area.

This is particularly apparent in the areas of Crewe, Middlewich and to the north and south of Warrington where demand continues to outstrip supply.

The high level of demand has seen a shift in the investment market, which has moved away from retail in favour of industrial property which continues to generate strong yields of between 6.00 and 7.00% for prime stock.

We are also seeing a growing number of speculative industrial developments, so would predict that the supply will eventually catch-up with this demand.

When looking at the retail market, location is key as many town centres have increasing voids as retailers favour out of town shopping outlets which can often prove challenging.

Chester is one example of this, with Cheshire Oaks Designer Outlet booming as many shopper’s favour driving to the retail park rather than visiting the town centre.

Banks are also restructuring which is resulting in more empty town centre units as branches downsize or close completely.

Knutsford is one area in the North West which is bucking this trend and has a resilient retail market which continues to attract investors.

We have seen a former restaurant which would also suit a retail market achieve a number of strong offers.

We also have a prime property becoming available in Knutsford town centre in February 2019 which we expect to be extremely popular.

The large retail unit in Canute Place would be suitable for national or large regional companies, and while other towns may struggle to attract retailers of this scale, we are predicting high demand for the unit.

Good quality office stock in both town centres and suburbs across the North West is still in demand.

One success story of the North West is online beauty retailer The Hut Group which recently announced it has finalised a deal to develop one million square foot of office and studio space at Manchester’s Airport City.

It is reported that the total investment is set to be &750m over the next three years.

However, we are also seeing an increasing amount of developers converting office space into residential properties.

As this reduces the supply of office space available, we would expect the office market to strengthen once again and see more being built down the line.

So, while there has been a shift in market trends, it is clear that the property sector remains strong in the North West and there are still plenty of investors out there who are keen to invest in the area.

We have recently agreed several sales and lettings and require more properties to market.

for more information regarding commercial properties, please contact

simon.geary@fishergerman.co.uk tel: 01565 757977

At a recent talk given by the NFU Mutual on estate insurance we were reminded of the risks involved in maintaining adequate insurance cover, particularly in relation to landlords. As a firm we manage a wide variety of property portfolios throughout the UK from rural, residential, commercial or a mixture of the above.

A key part of our management responsibility is to work with our clients to ensure that adequate and robust insurance policies are in place for when the worst happens. All too often we hear cases from insurers relating to under-insurance or where policies have been unfit for purpose.

Here are some of the top tips to help you manage what may be a highly distressing situation should you have to make an insurance claim:

1. Read your policy: is the policy fit for purpose and does it cover the intended use of the property? Make sure you are clear on any scenarios where your insurer won’t pay out as well as the excess amounts payable and any upper limits of the cover.

2. Under-insurance: Don’t fall into the trap of relying on indexation of the rebuilding costs as many do. Have a building reinstatement cost assessment carried out at least every 5 years to make sure you are within a sensible margin of current rebuilding costs.

3. Fair wear and tear: many insurers will not pay out for damage caused as a result of fair wear and tear. Speak to your insurer for their interpretation of this!

4. Tenant checks and inspections: during certain types of claim you may be required to demonstrate that you have carried out due diligence on all tenants and that you have undertaken regular inspections. Keep clear records of this activity for the duration of that agreement and speak with your insurer to understand the frequency of property inspections required.

5. Damage to unoccupied properties: most policies will only cover a landlord for a limited period of time. Be sure to check what you are covered for.

Whilst this is neither an exhaustive list nor meant to becoming a landlord, it does highlight the need to regularly review your policies, inspections and rebuilding values

For assistance with a building reinstatement cost assessment please contact either Alex Broad, alex.broad@fishergerman.co.uk or Robert Browne, robert.browne@fishergerman.co.uk

HS2 Phase 2b is gathering increasing momentum as the latest round of publications were released in October last year, in respect of the Draft Environmental Statement. This covers the proposed route on both the eastern and western leg as it splits north of Birmingham.

(Image from bbc.co.uk)

The purpose of the Working Draft Environmental Statement is to describe the likely environmental impacts of the building and the operating stages of Phase 2b. It also includes proposed methods to avoid, reduce, mitigate and monitor these effects. The document was subject to a ten-week consultation period which closed on the 21^st December 2018, providing a platform for people to express their views and responses to the latest proposals.

The Secretary of State for Transport has stated that ‘responses to this consultation will allow HS2 Ltd to improve further it’s understanding of the impacts, risks and concerns that residents and businesses may have concerning the route.’ For this reason, it is very important that anyone affected by this scheme responds formally to this consultation as the consultation outcome will inform the design, mitigation and environmental impact assessment of Phase 2b ahead of the statutory Environmental Statement.

As mentioned in the Environmental Statement, it is important to note that the Working Draft Environmental Statement is based on the Phase 2b route confirmed in summer 2017. A range of further potential local changes to the route are under development and will be released in due course.

The most recent set of plans show an increase in the amount of land required as part of the construction phase and environmental mitigation proposals. This has resulted in more people being affected by the scheme and some homeowners and businesses that were safeguarded in 2016 are now finding that more of their land is affected. 

If you are affected by the scheme, in light of the Phase 2b update, it is recommended to receive professional advice. In relation to business, this will affect future planning, making it important to engage early. If your home or business is affected and you would like to know more, please do not hesitate to get in contact.

Natural Capital – blue sky thinking?

A new concept in valuing environmental assets is gaining prominence.

The term `Natural Capital’ focuses on our `stock’ of waters, soil, air, species, minerals, geology and eco-systems and considers that they are all vital to economic prosperity, therefore attract a `value.’

Any assessment of Natural Capital includes hidden values in land, such as economic, social, environmental, cultural, recreational and spiritual; for instance, doctors are prescribing walking in the countryside as a tool in helping treat mental health issues.

A Natural Capital Committee convened by the government in 2011 found that our environment is in fundamental decline, putting our prosperity at risk; it must be protected to safeguard our economic growth.

The risks of not acting to support vulnerable areas include local, regional or global eco-system malfunction/collapse, loss of biodiversity and at the extreme end of the scale, flood, drought, population movements, loss of crops and starvation. Mitigation steps may include replanting forests, allowing aquifers to replenish following water abstraction, protecting rain forests and carbon sequestration. 

Assessing Natural Capital may herald change for the planning system; the Natural Capital Committee recommended some form of net environmental gain for development, i.e. leaving the environment in a better state than it was found.

Changes to the system of environmental payments are also inevitable, with farm subsidies set to be replaced by environmental land management schemes with payments given for looking after land. Whilst the concept is `public payment for public good,’ the question is how to assess `public good’ and the challenge for land managers, landowners, valuers and lenders is how to express this value.

While valuing nature can seem a nebulous concept there have been studies to assess its value in monetary terms. For example, Mexico’s mangrove forests were found to provide $70 billion to the economy as they provide storm protection, support fisheries and attract eco-tourists.

As farm businesses contemplate major change following Brexit, Natural Capital is set to become increasingly relevant and the ability to identify it, value and protect it will be key. Regulation and a new legal structure may be required to provide a workable framework.

Contact one of our regional offices

Chester       01244 409660

Knutsford    01565 757970

Stafford      01785 220044