Hot Topics Flashcards
Are you aware of any recent updated professional guidance from the RICS?
Rental Evaluation Service launched - to help landlords and tenants negotiate payments during COVID-19.
Market Uncertainty Clause - Market Uncertainty Clause forum stated to lift the clause for majority of real estate aside form assets with trading potential e.g. hospitality and leisure facilities - Covid impact still not known.
EWS1 - RICS collaborative working on The External Wall Fire Review forums, designed to ensure external wall systems on buildings over 18m tall could be assessed for safety to enable lenders to make decisions on funding.
What is the current business rates multiplier?
2020/21 =
- 51.2p
- for Small Business - 49.9p
What is the Manchester market like currently (pre-covid) what yields / rents would I be looking at?
Top rent is £36 sq. ft. in the office market.
Lack of supply for Grade A offices
Prime Yields around 4%-5% (office)
Resi;
flat like mine in City Centre circa £170,000-£200,000
Rents circa £800pcm - £12000pcm
What reliefs are available as a result of Covid?
Business rates tax holiday between 2020-2021 for retail hospitality properties.
RV Grants;
small business grants = if rv between £12,000-£15,000, grant of £10,000 available.
retail leisure entertainment grants = if rv below £15,000 grant of £10,000. If rv between £15,000-£51,000 grants up to £25,000 available.
Nursery Relief discount = 100% relief for nursery units registered by ofsted.
What do you know about use class changes?
Prescribed by the Town and Country Planning Act 1987, classifies property into classes depending on type.
3 new classes introduced;
Class E - Commercial, business and service – essentially incorporating former use classes A1, A2, A3 and B1
Class F1 - Learning and non-residential institutions
Class F2 - Local community
What is the current interest rate in the UK?
0.1% prescribed by the Bank of England.
Prime office rent / yield?
£36/SQ. FT. yields around 4%-5%
Prime retail rent yield?
£34.50/sq. ft. yields softened to around 7%-8%
Prime industrial rent/yield in Manchester?
£7-£8/sq. ft. yields around 4%-5% in prime areas
