The Northern Ireland Executive’s draft Programme for Government identifies providing access to affordable, sustainable, and quality housing as an immediate priority and acknowledges the pressing need for action. Propertymark supports this aim and has made specific recommendations to accelerate progress.

Propertymark calls for fiscal policy geared towards stimulating supply in the private rented sector, boosting homeownership, and tackling the scourge of empty commercial properties that blight Welsh communities.

Planning has not created a housing emergency — but it can help solve the challenges. The Scottish Government is focused on identifying how its planning system can help to provide solutions with the introduction of a new Housing Planning Hub that will be launched and operational in early 2025.

Regulations come into force on 2 December 2024 which will allow local authorities in England to auction off the leases of persistently empty high street shops. The UK Government states that the scheme will breathe life back into town centres and drive local growth and opportunities. Propertymark welcomes the move, but we would like to see more detail on which areas will benefit the most, how the powers will be funded, and how they will be used in practice by councils.

Although the economic outlook remains mixed, the quarter ended with inflation in line with the Bank of England’s target, a precursor to a long-awaited reduction in the base rate. Our agents are bullish regarding capital values and rent levels in key sectors including the Industrial and Land and Yards sectors where demand continues to outstrip supply.

The UK General Election has returned the Labour Party to power with a parliamentary landslide, ending 14 years of Conservative government. Aiming to channel the spirit of Clement Attlee with a proactive and strategic approach to housing, the party campaigned on a manifesto that promised significant changes to planning rules, strict targets for delivery of new homes, reform of the private rented sector (PRS), long-term schemes to help young people onto the housing ladder, and local powers for councils to take over empty commercial premises.

Although challenges remain, key economic indicators give cause for optimism. GDP is trending upward, and inflation is edging closer to the Bank of England’s target. Member sentiment varies by sector, but there is notable positivity in the Land and Yards and Industrial sectors. Supply and demand imbalances remain, most notably in the Pubs and Restaurants sector, which continues to be impacted by changing trends.

The UK Government has announced that new powers to enable local authorities in England to regenerate high streets and fill empty shops will be in place by summer 2024. Propertymark welcomes the move, but we would like to see more detail on which areas will benefit the most, how the powers will be funded, and how they will be used in practice by councils.

The Scottish Law Commission has opened a consultation on the Tenancy of Shops (Scotland) Act 1949, which deals with commercial lease renewals for retail, food and drink, hair and beauty and wholesale tenants. They are seeking the views of agents, tenants, and landlords on whether there is still a need for the Act, and whether it should be repealed, replaced, or reformed.

It is clear from member sentiment, that economic uncertainty, and interest rates in particular, are continuing to weigh on the commercial property market. Supply and demand imbalances continue in key sectors, suggesting that there will be a challenging start to 2024.

NAEA Commercial Advisory Panel and Propertymark Board member Michael Sears, MNAEA MARLA MNAEA (Comm) MNAVA HIDip Ndea, has cautioned against complacency when it comes to commercial buildings insurance to avoid the frustration of claims being invalidated.

The UK Government’s detailed proposals for the 2025 Future Homes and Buildings Standards will amend existing legislation to set new minimum energy efficiency requirements for buildings in England. Most changes will apply to new homes and non-domestic buildings and should ensure no further work will be needed for new buildings to produce zero carbon emissions as the electricity grid decarbonises.

There are approximately 350,000 listed homes in England, and approximately 600,000 commercial properties dating from before 1919. The impact of the cost-of-living challenges means fewer households and businesses can afford the required work to install energy efficiency upgrades. This, in combination with increased costs for historic building retrofit skills and materials, makes comprehensive retrofit action unobtainable for many property owners.

The Secretary of State for Energy Security and Net Zero, the Rt Hon Claire Coutinho, MP, responded to our call for certainty and confirmed that no changes have yet been made to Minimum Energy Efficiency Standards (MEES) for non-domestic properties. However, she acknowledged it is essential that the UK Government reviews their policy design and timelines to ensure they are still fair and reasonable.

The base rate was held in September, GDP is growing slowly, the construction materials price index is decreasing, and Propertymark Commercial agent sentiment is increasing in several key areas. However, economic uncertainty remains and improvements in sentiment are generally from a low base.