Lincolnshire property fairs well but storm clouds gather

LINCOLNSHIRE seems so far to be riding out the recession better than other counties, according to Hodgson Elkington, the Lincoln-based chartered surveyors.

“Undoubtedly values dropped and occupancy rates fell in respect of all areas of the commercial property economy, namely retail, industrial and offices. However the year was not all doom and gloom,” said Sam Elkington, senior partner at Hodgson Elkington.

“Lincolnshire as a whole has seemed so far to ride out the recession better than other counties and the failure rate on businesses and properties that we have been involved in have been much reduced from the national trend,” said Sam Elkington.

“It has been clear to us through the level of activity that we have experienced in the market over the last 12 months that investors with cash on deposit, who are not receiving good interest returns, are turning to the commercial investment property market which is experiencing a high level of activity.

“We have been able to transact a number of deals through the year which have shown that the current recession is not typical of previous recessions as principally interest rates remain low.

Looking to the year ahead he said “I feel that there may be a false dawn during the first half of 2010 because of the impending election and that during the second half of the year, whichever government is in power, we will see harsh cutbacks and taxation increases which will affect the property market.”

Hopes for 2010?

• Keeping Vacant Commercial Property Business Rate relief after April 2010 on lower value commercial properties.
• Keeping interest rates at the level that we are at now.
• That any new government actually comes up with ways of stimulating the economy rather than over taxing successful businesses to make them less inclined to expand capacity.
• That we are all still here in 2011 to consider the next year’s economic outlook!