Business report: commercial property
Written by Natwest
There’s a new economic confidence in the UK and now could be boom-time for SMEs (small and medium enterprises) who want to buy commercial premises.
The commercial property landscape has been treacherous since the economic downturn, but thanks to government investment and the green shoots of a recovering economy, SMEs can finally feel more confident about buying commercial premises.
Earlier this year, the Bank of England announced changes to the Funding for Lending Scheme that makes it even easier for banks to lend to SMEs. This, coupled with falling prices over the last 12 months, means that many UK SMEs are now able to invest in their own premises.
Why buy?
Add value – A commercial premises adds to the value of your business. It’s an asset that can increase in value over time, boosting your capital.
No rent – Buying commercial property also means that you won’t be subject to sudden rises in rent, which can put pressure on your cash flow.
Manage your cash flow – your mortgage repayments are likely to be similar to or possibly even less than your rent. If you get a fixed rate mortgage you can plan your payments for the long term.
Tax benefits – the interest portion of your mortgage repayments are tax deductible.
It’s yours – you can make any alterations you like without asking your landlord.
The challenges
Of course there are some challenges when it comes to buying. According to an RBS Commercial Mortgage Survey, UK SMEs think the biggest blocks to buying are:
- Lack of deposit
- Lack of available property
- Economic uncertainty
However, as commercial property prices drop – significantly in some regions – the opportunities for UK SMEs to buy are improving. Combined with the increased borrowing potential, businesses can feel confident about buying premises.
For more information on which types of property are available in your area, check out this article at
www.nw-businesssense.com/Rightmove.html
Are you looking to buy, rent or sell commercial premises? Visit Rightmove Commercial for property for sale and to let across the UK.