PRESS RELEASE

2009 Review & Reflections

I think we all looked at 2009 with caution and looking reflectively at the year it was always going to be so. There was in my opinion a strong start to 2009 with a nice flow of transactions which transferred over from late 2008. As the year moved into spring the market was in “anticipation mode” with the “top of the year” instructions and property normally enter the market or not.

What actually happened was a real education in general prices. Much of the properties on the market realised that adjustments had to be made. With this revised price strategy (20%) the property market naturally flourished and we saw a movement of transactions. I think from an agent’s point of view this was the main turning point in the year & as Mr Blair said “education education education”. No longer were “aspirational or inspirational prices” but clear concise numeric and mathematical formulas & apportionments being set in their true values.

So we are back on the right track again with property and businesses entering the market at 2009 prices. This was a huge hurdle for everyone but logic had to prevail. We saw as the media say “green shoots” and this flowed in the westcountry with firstly the lower residential market (sub £150,000) being active which then lead onto the middle of the housing market (£150,000 - £300,000). You are probably wondering why I am concerned and interested with the residential house market but in truth the commercial market is fueled by basic house sales. Can you remember driving around in May & June in your home area and seeing a good number of Sale Agreed and Sold signs being put up ? Here is not full recovery but re-born activity, which was good.

Summertime is summertime in my opinion and this is an area of the year where most of our businesses are active in their own business. If you have a Hotel or Inn or catering business this can be one of the busiest times of the year. Several sales happen close to the start of the summer period for obvious reasons. This year had a small helping hand to traders in the way of UK holidays and high Euro rate so many stayed in the Westcountry. As agents we look at the summer as a period of preparation ready for the autumn market and sales.

The autumn was as anticipated with general hospitality stock but with an ever growing emphasis on catering businesses. I would say skilled and non skilled catering from fine dining restaurants to direct catering - tea shops café’s and the like. Remember that several people have and still are changing direction in business and catering is a good way in.

I should say at least something about banks and lending, this is a topic I am always asked about. In general terms some banks are still unclear about the commercial market but certainly what I have learnt in the past six months is that there are Banks out there who do want to do business. The lending criteria’s may have changed slightly and the paperwork more precise but if the business and people “stack up” and I quote a Bank, they will lend.

Finally the Winter and the end of 2009, as I look back only a few weeks ago before the snow the year ended better than it started with general improvement across all areas of the commercial business market. We even had a restaurant business being agreed in six days.

So I welcome and look forward the next decade and of course 2010. Are you buying or selling in 2010 ?

Written and observed by Gary Cleverdon of Westcountry Commercial