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Written by: Ruth Stevenson, Director/Solicitor at Ives & Co Solicitors
In a surprising turn of events, the so-called ‘left-behind’ towns earmarked for £20 million endowment-style funds under the Government’s Long-Term Plan for Towns have emerged as unexpected stars in the commercial property market. A recent study by Search Acumen, a property data insight, and technology provider, reveals that these towns, often overlooked, have outperformed the wider market in commercial property transactions. Ives & Co, leading solicitors serving Nottingham and Kent, can assist with commercial property.
Despite being labeled ‘overlooked,’ the 55 towns across England, Wales, and Scotland targeted for additional funding have demonstrated remarkable growth in commercial property transactions. Search Acumen’s analysis focused on 48 ‘left-behind’ towns in England and Wales, indicating a total spend of £3.3 billion in 2021. This figure marks a 23% increase from the £2.7 billion recorded in 2017. In comparison, the rest of the market experienced a 6% growth, reaching £107 billion in commercial transactions during the same period.
Even amidst the challenges of 2022, commercial spending on property transactions in these towns only saw a 3% decline from 2017 levels, outshining the broader market, which faced a significant 19% fall. Skegness stands out as the front-runner, with a remarkable four-fold increase in the total value of commercial property transactions from £26 million to £137 million in 2022.
Other towns that enjoyed triple-digit rises include Darlaston (201%), Worksop (166%), and Kirkby (100%). The study also reveals that, over the past five years, left-behind towns across England and Wales have steadily increased their share of spending on commercial property transactions. In 2017, these towns represented £2.60 in every £100 spent on non-residential transactions, rising to £3.50 in 2023.
Interestingly, regional variations play a significant role in this growth. Towns in the Midlands have experienced substantial annual commercial property market activity growth, with the East Midlands leading at 38%, and the West Midlands recording a 6% increase. In contrast, Northern regions witnessed a 13-17% fall, while left-behind towns in the South West endured a 27% drop in commercial spending since 2017.
This unexpected surge in commercial property transactions in left-behind towns challenges preconceptions and underscores the resilience and potential for growth in these communities. As the Government’s commitment to supporting local priorities gains momentum, these towns may continue to play a pivotal role in revitalizing high streets and fostering economic development.
Emerging regional markets may offer attractive opportunities, but careful legal due diligence remains essential when assessing a property’s title, leases, restrictions and development potential.
If you are buying, selling, leasing or investing in commercial property in England or Wales, please contact one of our offices, email quotes@ivesandco.com or call us to discuss how our Commercial Conveyancing team can assist.
