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Cuts To Lay Property Rents To Waste

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http://uk.finance.yahoo.com/news/government-cuts-to-cripple-property-firms-tele-05dab8e11084.html?x=0

Government cuts to cripple property firms
Graham Ruddick, 14:43, Monday 18 October 2010
The Comprehensive Spending Review may decimate rental income as the Coalition prepares to cut office space and more effectively use state assets.
It would take more than 230 replicas of the Gherkin skyscraper to accommodate the Government's existing office space. Imagine (Paris: FR0004150647 - news) the cost of constructing those skyscrapers. Then imagine that 25pc of them fall empty. The loss of rental income would leave the developer with a crippling hole in his finances and, given the economic downturn, a fierce battle to find replacements...../
Data on the Government's property holdings is inconsistent and fragmented but perhaps the most thorough and respected research is the Office of Government Commerce's (OGC) State of the Estate. It shows, as at the end of 2009, that the Government occupied 115m sq ft of offices, with around 35pc in London and the South East and 12.5pc in the North West, the equivalent of 14 Gherkins in Manchester (MNCS.OB - news) .
About 38pc of the office space is owned, 33pc is held through the Private Finance Initiative (PFI) and 29pc is rented. The cost of running the estate is £3.47bn a year and the property assets owned by the state are worth £350bn.

It will be a bloodbath, that is for sure. BTL empires will crumble too as government jobs are shed and hundreds of thousands have to sell their homes and look for cheap council properties somewhere.

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It would take more than 230 replicas of the Gherkin skyscraper to accommodate the Government's existing office space.

:o

33pc is held through the Private Finance Initiative (PFI)

Feck. We are stuck with it, contractually. :angry:

About 38pc of the office space is owned, (...) and the property assets owned by the state are worth £350bn.

Sell the fecking lot!

29pc is rented.

Hand the keys back. That PFI space above should suffice.

Edited by Tired of Waiting

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  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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