One of the main headlines in the Summer Budget was the increase in the Inheritance Tax Allowance to £1m for the family home. This is important for two reasons: firstly, families often had to sell the former home in order to pay the tax where liquid funds werent available, whereas now some families will have an opportunity to retain it and potentially derive an income from the property itself, or their existing property, straight away. Where sales do take place, the release of the full value up to £1m back to the family, however, represents a significant opportunity for the commercial property market to offer an investment with a return potentially well above banks and building societies.
Commercial property yields range from 6 12% depending upon length of term and the strength of covenant offered by the tenant. In many cases this can be well above residential yields. Whilst there is strong competition in popular city centres, opportunities are still to be found where value can be created by astute asset management. With a substantial portfolio of managed properties around the town, County and beyond, Chown Commercial is able to offer advice to purchasers in this position and to provide professional management services following a purchase. The practice is fully regulated by the RICS and provides an acquisition service to identify and purchase investment property to meet a particular specification if required.
Also in the papers recently has been a revision to planning laws allowing localised decisions on extended Sunday opening for larger shops and this could have its merits. Although convenience stores may complain that this may take away one their last remaining advantages over their supermarket rivals, if the rules are flexible enough, the Local Authority may be able to drive additional footfall into the town centre on a Sunday or Bank Holiday. In any event, even if the policy is introduced more widely, the opportunity to open for longer hours to fight back against internet shopping seems to be a help for retail business generally.