Tuesday, Dec 01, 2009

More "closing down" sales

Standard: HSBC warning of more pain to come for UK landlords

Britain's biggest landlords will suffer a nasty hangover next year. That's the verdict of HSBC which warned today that the commercial property sector will suffer a “double-dip correction”, with rents falling further as the number of empty shops and offices climbs, business rates rise and demand from new occupants remains weak. The bank's boffins believe shares in the sector are “grossly over valued” and that the value of their portfolios will fall by 10% on average in 2010.

Posted by alan @ 01:55 AM (1036 views)
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1. general congreve said...


Tuesday, December 1, 2009 02:19AM Report Comment

2. crunchy said...

I haven't heard much from (the so called adviser) Lord, Baron, Alan Sugar lately. Panto and TV may be his future for now. How the mighty slowly fall.


Tuesday, December 1, 2009 09:02AM Report Comment

3. crunchy said...

Perhaps he is working towards a new concept show, I'm a Rentier, get me out of here!

Tuesday, December 1, 2009 09:11AM Report Comment

4. nomad said...

Off topic but, hopefully, of interest.

My son rents a shop in Bournemouth - signage - and pays £700 per month rent. Above is a two-bed flat and occupied, another £525 pm.

His current landlord bought the property in 2004 for £154,000 and has just come to see him and offered him the lot for £200,000, she has also offered a loan of £20,000 to be paid back in 5 years at current "sensible interest" to cover the deposit.

My wife and I are currently renting, having sold in 2007, so have a pot from which a contribution could be made. My problem is I am so off property at the moment.

Any thoughts would be very much appreciated.

Tuesday, December 1, 2009 10:33AM Report Comment

5. letthemfall said...

Take lots of professional advice if you can find it.

Tuesday, December 1, 2009 11:01AM Report Comment

6. rumble said...

Nomad, HPC graph says you'd be paying higher than peak price.
30% increase over 3 years from buy to peak, what about fall since peak?

Tuesday, December 1, 2009 12:50PM Report Comment

7. nomad said...

Yes, thank you gentlemen. Also a comment from another topic stresses that, because of low IR, this would be a really bad time to borrow long term.

Tuesday, December 1, 2009 01:08PM Report Comment

8. crunchy said...

7. nomad, and the seller knows that.

Tuesday, December 1, 2009 02:24PM Report Comment

9. timmy t said...

nomad - sounds like the landlord is keen to sell. She probably knows that interest rates are only headed in one direction which will squeeze her rate of return. So only other advice would be to ensure your son prepares for the worst. i.e. she gets repo'd and he needs to find another shop quickly, or rent might be on the increase sometime soon. As for accepting her offer - obviously difficult to say without knowing the property, but in generic terms I think you are right, now is a bad time to buy unless the deal remains a bargain despite pricing in significant rate rises.

Tuesday, December 1, 2009 03:05PM Report Comment

10. crunchy said...

However, may I also add that owning a signage company in a healthy economy or even one on the up is a solid business if ran well, but don't call it Signs of the Times or Vinyl Countdown.

Tuesday, December 1, 2009 05:12PM Report Comment

11. nomad said...

Quality input. Thanks everyone. The landlord's hubby is a doctor and they are moving house to something more rural with some land. Want to sell the shop and flat to help fund it. I may make a silly offer.

Tuesday, December 1, 2009 05:35PM Report Comment

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