Self Storage Supermarket – The One Stop Storage Shop

The world is going through the worst period of recession since the great depression and people are skeptical about making investments in property. However investing in a self storing business may be the way forward as it is different, because it is has some resistance to the effects of a recession. An American property consultant said in the NY Times “It guarantees consistent profit margin because there are almost no risks involved in such businesses. Besides that, it is very easy to maintain a storehouse facility in during bad economic times.” There are property investments going bad around world including in the relatively small world of Self Storage.  So to say that Self Storage guarantees anything is foolhardy as no business guarantees anything, particularly now where household names such as Woolworths are falling by the wayside. However, there are reasons why Self Storage fairs better than some during a recession. Low Operational Costs: One reason why these Self Storage Operators remain unaffected even during difficult economic times is that they involve very little management costs in comparison with other retail businesses. Many facilities only have one PC and one member of staff, utility costs are low, rates are low and maintenance bills are generally low. According to recent studies, it has been found that self storing has been the fastest growing sector in the commercial landed property market of the USA. Within just 20 years, it has grown into a huge 220 billion dollar industry. Self Storage Facilities are shooting up everywhere because these facility owners know that the need of storing is always going to be there in a capitalist and consumer driven world. Modern culture that people follow these days in keeping up with the neighbours, they tend to accumulate a lot of stuff in their homes. Kids toys, gadgets that go out of date within a year, gifts from people, the list goes on and on of the stuff we keep nut do not need.

The Requirement for Self Storage remains: The demographic of people who use Self Storage is from A-D with the exception of students during the summer months. Many in the upper demographic who are wealthy enough to withstand a long period of economic recession do not stop enjoying their recreations. They still own skis, boats, and other luxuries and they need safe and secure storage to keep such belongings. Though money is not a big concern for them, security and convenience are. Receivership and re-possessions help Self Storage: In this period when the world and in particular the UK is going through the worst economic downturn and the number of repossessions is on the rise, the demand for self storage will increase as they try to take their goods away from the hands of the bailiffs. Since people are losing their homes in re-possessions, they need a safe yet affordable place to store their belongings and Self Storage has the answers. However, since people are not buying as many new things today, there has been a decline in demand. Such decline in demand has been compensated well with the increased demand caused by repossessions. That is one reason why it is said that self storage industry is recession proof. People will always need such facilities whether the economic situation is good or bad. However when an oversupply of Self Storage facilities in the area is prevalent the problems are exacerbated.

People not moving house can ensure their goods remain in Storage: Besides re-possessions, downsizing of house sizes also occur when people go through a long period economic downturn. Many people, especially ones who are badly affected financially because of recession, choose to move to smaller homes in order to save money and keep control over their money. However, very few people actually choose to sell their possessions just because there is lack of space in their new smaller homes during an economic downturn. In such cases, they again look towards storing houses because they can easily rent a safe storing unit in these facilities at a very affordable price.  In conclusion it is irrational to assume that Self Storage will not be affected by a global recession, every business is affected by the recession in one way or another. However it is fair to say that Self Storage does offer some protection when compared to other types of property investment.

This year the Self Storage giants of the UK Self Storage Market Big Yellow and Safestore were added to the FTSE4Good index, showing that the Self Storage sector see benefits in dealing with environmental and social-economic factors. Self Storage isn’t a natural home for green lobby with large generally inefficient buildings and encouraging people to buy more things travel to and from home to access them. The Self Storage sector has not been as quick to recognize the benefits of sustainability as other property sectors. All Self Storage businesses should be keeping one eye on how Safestore and Big Yellow deal with the demands of improved sustainable practices and what benefits this sustainability brings too  their business model. So is the exercise just good PR or is it worthwhile. Many business leaders see sustainability and the likes as a diversion from the main business of running a company, great to be seen as green but if no additional revenue can be gained then what is the point. In Self Storage sustainability can be seen as a risk management exercise. Identifying opportunities and threats will provide protection against potential losses in revenue and decreases in property value in both the long and short term. The main avenue Safestore and Big Yellow will be exploring will be ‘are there any cost savings’ to be made by using a sustainable policy.

The latest temperature increase predictions by those in the Met office or by dodgy professors keen to press forward their own theories is that the temperature could rise by 4 degrees by 2060 if no significant measures are taken to reduce carbon emissions. This may result in an increase in the next 30 years of 2 degrees. This will result in increased drought, starvation and many deaths throughout the world. The worst effects however will not be in Northern Europe, however as we can see from recent events floods and other weather extremes will become the norm. This will have a huge impact on those building or developing new buildings such as Safestore and Big Yellow and other Self Storage operators. Self Storage operators will need to consider the need for better drainage and larger gutters. Protection from strong winds and more demand for temperature controlled buildings will be important. Another factor for Self Storage businesses is that insurance premiums are certain to rise with more extreme weather conditions. Maintenance costs will also increase and all of these things will have an impact on the business model. Poorly adapted buildings will simply have less value than buildings built to withstand extreme weather conditions. This will be of particular concern to buildings in certain geographical areas and this just doesn’t mean on the coast or in exposed areas, London is as likely to flood as anywhere else. In the Self Storage sector, the risk of damage to buildings and contents is particularly acute and this could mean that some facilities are viewed as unfit for purpose. The argument for adapting your Self Storage development plans is strengthened by all of these points. As a result it would be wise for Self Storage Operators who have a long term interest in developing their Self Storage portfolio over the next 20 o 30 years.

Consequently, opportunities exist to mitigate against the risk of asset value depreciation and obsolescence, to cut operating costs in the construction process and to enhance reputation. It is also worth Self Storage companies thinking about the ‘green value’ of their other revenue streams such as packaging (recycled or not) or van hire (low emission). Integrating sustainability into these goods and services has the potential to increase their attractiveness to customers and enhance brand strength. There are a number of businesses who are considering a greener approach to their business strategy and you need to consider the following if looking to have low emission vehicles, recycled packaging or using more environmentally friendly materials in the building process. One is to focus on areas which will have the greatest impact in enhancing value either in cost savings or positive PR. Consider the long term the costs of using high cost materials may seem heavy but weighed against the long term savings on utilities it may be economically beneficial. Have a plan don’t just think putting in a low emission vehicle will be marketable as being environmentally friendly; the green brigade will be onto this quickly.

Self Storage businesses in Scandinavia are already using more environmentally friendly products in the construction of their self storage facilities and are marketing themselves as such. This is likely not just to be fad the green movement is here to stay and the environmentally friendly Self Storage business may gain a competitive advantage.

Belfast property values were hit very hard after the banking crises party down to Ireland’s economy being left in tatters. Another reason was that property values were so ridiculously over inflated for a city still scarred by religious troubles. At the height of the market land in Belfast was more expensive tan Edinburgh, Leeds, Manchester and Bristol to name a few with no real justification. So what has the credit crunch meant for the Belfast property rental market, well surprisingly it is looking increasingly buoyant at the moment. So why is this, after cataclysmic drops in property values how has the rental market managed to sustain itself? After recent news that a GBP50 million skyscraper building project has been launched to the west of the city centre, it has now been announced that a GBP100 million redevelopment will be undertaken on the land surrounding the city’s Odyssey Complex. This is the result of huge investment by the state to re-invigorate the Northern Ireland economy after year of decline.

The new complex is a huge music venue that also houses restaurants, pubs, an ice rink and a cinema. The complex was built as part of Belfast’s Millennium project, and has been a resounding success over the past decade. Capitalising on the success of the existing complex, the new development will include apartment blocks and two hotels, as well as shops, bars and restaurants. The development will substantially boost Belfast’s housing market, as it will include 800 new flats and penthouses in a highly desirable area. However is more flats the right idea, it has shown to be a disaster on the mainland with cheaply built flats scarring the landscape with people wanting to live in houses not flats particularly when they have a family. The property developers make huge profits on these flats which are built of cardboard and will not be standing in 50 years.

Included in the proposal are plans to incorporate the River Lagan in the development, with a meandering string of open public areas, which will include parks, children’s adventure courses, a public square and river trails. Surely the redevelopment along the Clyde in Glasgow has shown that you must build accommodation to last if you want to make the riverside a focal point of the city. The other problem is flooding which in these days of global warming must always be a concern for a new development beside a major river. Transport links will also be created, which will mean that Belfast’s bustling and vibrant city centre will be only minutes away.

Assuming the planning application is approved, Belfast’s skyline will be transformed with the addition of a strikingly modern 26-story glass-fronted edifice that will be named “The Vetro”, which is the Italian word for glass. The new landmark will have a luxurious four-star hotel as well as 144 serviced apartments and extensive leisure and conference facilities.

It is hoped that the development will also help to boost Belfast’s job market which has taken a pounding over recent months. The construction itself will create 300 jobs, and a similar number of new positions although many part-time will need to be filled once the building is finished to run the complex. Paul Durnien, the project manager of the development, said: “The development will be a tremendous asset to a part of Belfast that has lacked inward investment in recent years. The regeneration of this part of the city is a natural follow-on from the successful regeneration of the Laganside and Cathedral Quarter areas.”

Average house prices in the north have jumped by nearly 7% in the last quarter as Scotland’s property market experiences renewed optimism over the future. The three months to October 31, show the price of a home in Inverness and the Highlands and islands climbed by 6.9% to £168,815 which is amazing considering the financial turmoil the country is in. It means that Inverness is now the 3^rd most expensive town in Scotland after Edinburgh and Aberdeen to buy house. The strange thing is that house prices across Scotland only rose by 0.7% according to the Scottish House Price Monitor from Lloyds TSB Scotland said. However this drop in property prices for Scotland is much less than the previous falls of 1.4% and 4.3% in the previous 2 quarters. Professor Donald MacRae, chief economist with Lloyds Banking Group Scotland, said the latest figures showed renewed interest in the housing market. Consumer confidence has recovered from the lows of one year ago and is now back in positive territory but is still below the levels of pre-credit crunch. The cost of borrowing has reduced for many mortgage-holders, while there is now a perceptible increase in the level of mortgage availability, including first-time buyers.

The house price roller coaster varies massively from region to region with some areas worse hit than others by the credit crunch, the West of Scotland and the North East of England particularly affected. In Scotland Aberdeen has seen the biggest increase, with prices going up 13.4% in the last quarter whilst in the central region, Fife, Perth and Tayside, excluding Dundee, have recorded a 1.4% rise. However what about the two main economic drivers of Scotland Glasgow and Aberdeen they have not performed so well with price decreases of 11.8% and 9.8% respectively. This shows just how volatile the market is with movements in price all over the place. These are the largest property price swings in 10 years said the report. Annually prices have decreased all over Scotland with Aberdeen and Edinburgh bearing the brunt of the reduction. The decrease varies from 0.7% to 7.2% so there is an element of the postcode lottery. The average price of a Scottish home is now £153,605 this compares with and average of over £200,000 in England.  There is also a disparity in what type of property you own for example, semi-detached houses fared best, but the price of flats, terraced houses and detached houses all fell considerably.

According to the property agency ESPC “The worst of the housing market downturn is now past, with some areas of Scotland showing price increases.” Meanwhile, most properties in England and Wales dropped their house prices by an average of £3,744 during the four weeks to November 7. ESPC said it expected the drop to be the first of three monthly falls over the traditionally quiet winter period, however on the bright side they expected house sales to start to recover in the particularly busy property season through spring and summer. Moving house always comes secondary to Christmas as most families like to be settled somewhere for the Christmas period. This is a phenomenon which has always occurred in Europe largely due to religion, however the climate particularly in the northern countries also plays a part, and no one wants to move when the weather can disrupt removal plans.

ESPC also added that “While the market has recovered from some dreadful lows, this month’s price fall proves that it does not yet have the strength to buck seasonal trends.” “We therefore expect three months of asking-price falls before a tentative recovery in early spring, likely followed by pre-election jitters.”

The credit crunch will have a role to play in house prices throughout 2010-2012 and possibly beyond only strong Government intervention to secure control on the national debt will see the property market stabilise.

Recovery is on the way, so we are led to believe but is it true and will it fall again the near future.  Scotland is beginning to recover or so they say, with Aberdeen leading the charge, I guess the Oil price may be recovering too. Average prices of homes north of the border has risen 0.7% in the last quarter, the latest Scottish House Price Monitor from Lloyds TSB Scotland said. House prices have risen in four of the last seven months, after hitting rock bottom in March 2009. Aberdeen has seen the biggest increase, with prices going up 13.4% in the last quarter, while the north, excluding Aberdeen, has seen a 6.9% rise. This shows the just how robust the Aberdeen property market is, and how it continues to be a sound property investment. Only Edinburgh has a stronger market than Aberdeen in Scotland and with the collapse of the financial sector may mean Aberdeen takes over in the next few years. Property transactions in October was 33% more than in May, when it was at its lowest point, however some liquidity has returned to the banks and the wealthy are again able to purchase flats and houses again.

Annually, Scottish house prices have fallen 7.5%, but economists said there were signs the market was now on the up. Professor Donald MacRae, chief economist for Lloyds Banking Group Scotland, said: “Consumer confidence has recovered from the lows of one year ago and is now back in positive territory but is still below the levels of pre-credit crunch. The cost of borrowing has reduced for many mortgage holders while there is now a perceptible increase in the level of mortgage availability including those first time buyers.” “The Scottish housing market is beginning to recover,” he added.

The picture in Scotland and the rest of the UK is mixed however with some places showing huge increases others huge decreases. An increase of 0.7% in the latest quarter follows a price fall of 1.4% in the previous three months and a fall of 4.3% in the quarter before that. Even in Aberdeen there are huge variations which show the market is far from stable. Edinburgh and Glasgow have not fared so well, with 11.8% and 9.8% price decreases respectively. The report said price movements in the latest quarter were particularly volatile with larger swings than normally experienced over the last 10 years. Annually, house prices have decreased in all areas of Scotland, ranging from a 0.7% drop in the south-east, excluding Edinburgh, to a 9.8% slump in Dundee. In Scotland a home now costs on average £153,605. This compares to an average price in England of £221,000, however this is inflated due to the high prices in London, and Scottish house prices are comparable to the North of England.

So what type of house has faired better? Believe it or not semi-detached properties appear to faired better during the credit crunch in Aberdeen but surprisingly not detached so what is going on. The experts believe people are struggling to get the big mortgages required for the large detached properties in Aberdeen so they are downsizing their requirement as they have less confidence in their income so opting for the semi-detached which does not leave them so financially exposed. Not surprisingly flats have faired worst. In England and Wales sellers have dropped their asking prices by an average of £4000 in order to secure a sale. It is expected that prices will continue to fall over the winter period but pick back up again in the spring of 2010.

So what does this mean for Aberdeen, business as usual? Unlikely, as ever the Aberdeen property market will be tied on strong leash to the oil market and in a global recession the oil industry is taking a hammering. The drop in demand for oil, the rise of the green movement, wars and natural disasters have all contributed to pressure on the oil markets. With new supplies in such inhospitable areas as the Arctic and Antarctic the future looks tough for the Oil Industry, this may have a detrimental effect on house prices in Aberdeen. However the oil industry has been through tough times before and came out fighting, there is likely to be a strong oil industry in Aberdeen for the next 25 years and that will ensure house prices are kept at a high level.

Renting property in Aberdeen has been expensive since the discovery of Oil in the early 70’s. Aberdeen has continued to have the highest house prices in Scotland outside the capital since the Oil discovery. This has been led by wealthy Oil workers and migrants brought by the Oil industry many of them wealthy Americans. Aberdeen is located in the North East of Scotland, East of Inverness and to the North of Dundee, with an approximate population of 220,000. Aberdeen is one of Scotland’s major Cities and is a popular residential area with 25% of the population aged between 20 and 34. Aberdeen has a strong history and heritage with a thriving community. Aberdeen has some strong industries in tourism, farming, fishing and the obvious Oil industry. Aberdeen has all of the amenities that you would expect from a thriving city including excellent shopping facilities with all the regular retail stores but also smaller boutiques and specialist shops. Nightlife includes many nightclubs, bars, pubs and restaurants offering something to suite everybody. A night out in Aberdeen can be a lively one, and a cold one so wrap up.

The range of property available in Aberdeen is wide, ranging from new build flats (which have thrown up all over the UK), 1 and 2 bedroom houses, traditional terrace properties, and large modern family houses to executive detached properties. Some of the old Granite houses although dull look substantial and have a grandeur about them. After all it is the Granite City so why not live in a Granite house. There is a property to suite everybody in Aberdeen and surrounding areas. When you start your rental search you must already be aware of your budget, rental is usually monthly in Aberdeen.  You must also consider all of the bills which generally will be your responsibility, these will include council tax plus utilities including electricity, gas, phone and water. It is always worth noting that it can be very cold in Aberdeen so heating bills can be large, look for something well insulated. Plus factor in other overheads you may have, for example a car or credit cards. Once your budget is fixed the sorted out then you can begin your search for your new property. Remember that you generally will require one months rent and a deposit equivalent to one months rent on the day you move in. This sometimes varies and it would be advisable to ask the agents in advance if there are any charges which you should be made aware of.

So before rushing into the town centre to gaze into the letting agent shop fronts make sure that you know what you want. They key to success like in most things is research and planning and it is important in order that you get a good idea of what property you can get for your money. These days everyone starts their search on the internet and here are a host of agent websites which will come up on your google search. Often there is a cooperative in the area which may have many properties on the website which can save you considerable time. There are a number of ways to do this, by far and away the quickest method is to use one of the online property portals. There are a number of key services made available by residential letting property portals, the main ones are listed below. You can often register with these site and put in your criteria for the property you are looking for and it will bring up the properties most suitable for you. It will also e-mail you when a new property comes to market which matches your criteria. This is the preferred method these days however if you are not internet or computer friendly there are other ways to search for property in Aberdeen. The traditional ways are to look in the local press in their property supplement and visit the dreaded Estate agent. They are not all that bad.

So what do you do now? To recap, you have decided how much you can afford, you have sat in front of your computer for hours and looked at thousands of properties and now you have a shortlist and an idea of the type of property available in your budget has been gained. Your next task is to check the ‘area’ in which you have found these properties, quite often very nice houses can be in very rough areas and there are some bad areas of Aberdeen although substantially less than other Scottish cities such as Glasgow. Your requirements of what you want will depend on what you would be class as a suitable area to live, where you work could be the most important factor. For example you may want to live in the city centre, near to the train station or a catchment area of a good school. The internet can tell you what schools are good in the area, the crime rate, the local MP and medical services, there is a huge amount of information out there. Now that the research is complete, and you have already found a property/properties of interest on the internet then contact the letting agent and arrange to go and see it. If not then you may consider visiting the letting agent website directly and registering your details with them or making a trip to the town to visit the agents personally. Always visit properties at different times of the day in order to get the overall picture of the area. Often it can be a different place at night with the local youth hanging about at your door.

Big Yellow Self Storage have you heard of them, chances are that you have. The people who don’t either live in a rural area or don’t get out much, they have hugely visible bright yellow buildings all over the country. The FTSE 250 Company has established itself as the leading self storage brand in the UK and although not the largest operator in the UK is certainly the best known. Safestore are the largest operator however have not been able to build such a distinctive brand, however this is changing with an aggressive internet led campaign. Self storage or mini storage (which it is often called in the US) was imported from the US and is today a multi-million pound industry which was growing at 20% year on year pre credit crunch. So what is Self Storage, the Self Storage Association (SSA) defines self storage as “the direct storage by individuals and companies of goods in their own exclusively occupied, self-contained, secured rooms/spaces, which form the major or primary use within a larger building or complex.”

The Self Storage Centres are customer friendly environments, often sited on major roads close to densely populated areas, industrial estates and retail parks. The likes of Big Yellow, Safestore and Shurgard are attempting to drive away the old fashioned image of storage services and replace it with a modern product fit for the 21^st Century. There view is to move the storage industry from a necessity when moving house to a luxury product which no self respecting middle class person could do without. Businesses find self storage as an alternative to owning or leasing expensive space.

Safestore, Shurgard and Big Yellow Self Storage, let storage space to business and individuals, and has helped pioneer the concept of Self Storage in the UK. In a decade, these three firms have managed to dominate the market in the UK however there are still a large number of independents providing Self Storage in the UK. A publicly-listed company, Big Yellow was founded by Nicolas Vetch, Philip Burks and James Gibson. It opened its first store in May 1999 and now has over 250 employees. The number of stores it operates from has also increased recently with a joint venture developing stores in the North and taking over the management of Armadillo Self Storage. It has 53 Self Storage facilities in the UK – the majority of which are in Greater London – they like Safestore and Shurgard have many more sites in the pipeline. “We really are pioneers of the latest generation of self storage in the UK,” says Operations Director Adrian Lee. “Our storage facilities are purpose built, clean, modern and utilise state-of-the-art security technology. We introduced many of the modern concepts associated with self storage and really try to offer customers, business and individual, the best possible service.”

In achieving this Big Yellow has become one of the most recognized self storage brands in the UK. Its stores are known for state-of-the-art technology with very high-profile, main-road locations, as well as cleanliness and a strong customer focus. “The key to our success has been exceeding our customers’ storage expectations,” adds Lee. “We essentially provide a very simple service on the face of it, in a modern, bright and clean environment.” This focus on customer service has been an important part of the Big Yellow’s development as they have driven at giving a retail customer service rather than a warehousing customer service which has been the norm. “Why would customers choose us?” asks Lee. “Well, very often people need extra storage space for their belongings. They could be moving home, re-decorating their house, or about to be starting a family. Whatever their circumstances, we can offer them clean, secure storage for as long as they want. That’s important.” “Our storage rooms come in all shapes and sizes too,” he continues. “That’s because customers have different requirements. We can also guarantee the safety of goods. We have CCTV, which is monitored by staff round the clock, and every single room is protected by its own door alarm. We also have unique PIN entry access to our stores, well lit corridors, and fire and intruder detection systems in all our self storage locations.”

One main feature of modern self storage centres the standard of security measures employed. Safestore, Big Yellow and Shurgard all provide systems to ensure they come top of the class. Safestore, Shurgard and Big Yellow have broad customer bases. Private individuals account the majority of its customers usually around 70% of rooms occupied. But business customers are playing an ever-increasing role. There Self Storage facilities tend to be considerably larger than those of its local competitors. They are generally building Self Storage centres with between 40-60,000 sqft of lettable space on several levels. This is a strategy which Big Yellow, Safestore and Shurgard use to penetrate local markets. There is no end in sight for the success of the big three Self Storage operators. The only operator which may break into that top three is Access Self Storage who have quietly continued to expand over the last few years. Our suspicion is that we will end up with a big four like the Supermarket industry or the English premiership.

Two Morecambe business women are determined to beat the property gloom with upbeat monthly seminars in Lancaster and Morecambe. They will be holding meeting for existing and potential property investors in an attempt to improve the prospects of the local property market.  The meetings are designed to put together lenders, letting agents, estate agents and potential investors. It is designed to help and assist people who intend to invest in the property market to find out about what finance packages are available and for what type of properties lenders are willing to lend on. Furthermore the meeting will help new property investors to identify what are good property purchases. It is also not that simple to rent out property and there are a lot of legal requirements to do so. People assume that you just advertise it, fill in a lease and that’s it.  If only it were. People are unaware of legal requirements such as Gas safety certificates and fire regulations not to mention what happens when rent isn’t paid on time etc.

The business women holding the meeting explain that the meetings are held in friendly environment with lots of people to network with and people who can provide the support you need when looking at property investments.

They have speakers who share their own experiences of the ‘buy to let’ world in addition to local surveyors, estate agents, letting agents, mortgage lenders, and representatives of the Accredited Landlord Scheme which gives people a wider understanding of property as an investment and how good landlords are required t work in Morecambe and Lancaster. In many areas of the UK Landlords are being forced by Law to join these Accreditation schemes however this is not the case in Lancaster and Morecambe yet.

Being a successful landlord is a major part of having a good long-term property investment. Encouraging people to join accredited landlords’ will be large part of the meeting according to the Morecambe business women. There are currently hundreds of people in the area looking for rented property in the area particularly at the bottom end of the market. The meeting will also cover how people can building property as part of their pension.

The first meeting was a great success. People who had always been interested in property investment as a way to sustain their future financial stability but lacked the knowledge of how to go about it benefit hugely from the meetings.

For several years now people have been queuing up for the possibility of buying property in Inverness and other areas of the Highlands and Islands. One particular development in Inverness called Holm Park was particularly with home buyers. Inverness seemed to be growing by the day and it appeared that the city would continue to grow forever with people migrating in from England and Poland and property rose as demand rose. At this time much of the UK was under the same illusion that money was cheap and demand would continue to outstrip supply with the result that house builders would continue to build cheap properties with cheap materials and the gullible public would continue to pay well over the odds. However the credit crunch has been great leveler and many greedy property developers have now been found to have no real financial muscle and the banks have left to take the loss. So the house market in Inverness is now at a more realistic level.

The market has slowed but this is probably a more normal pace than the hectic turn-over and huge price increases in the past few years.  Potential purchasers are out there but mortgages are much harder to come by and some buyers are losing confidence when looking at the scary newspaper articles regarding the property market.  However it should be remembered that these media are based in the South East and do not understand the market in Inverness and the Highlands and Islands. The property market in Scotland was never as overblown.

Local estate agents in Inverness have reported that they have around 75% more properties to sell than this time last year. Which shows many have run into trouble or are quickly trying to vacate the Buy to let market in Inverness.

A representative of J and E Shepherd Chartered Surveyors feels the Inverness market is reflecting the rest of Scotland. “The market has been so buoyant until relatively recently,” he said. “But there has been a real change and properties are now taking eight to 12 weeks to sell. In the last few years there has been an excessive demand but everything has slowed down and it is a buyers’ market for people with money in the next year to 18 months.”

The toughest time remains for 1^st time buyers who will find it very difficult to get finance for a home purchase and undoubtedly those with money will buy up properties, making the rich richer and the poor poorer. Most bank lenders have pulled out of giving mortgages especially to those with less than a 75% deposit. Most young people are simply renting due to lack of affordability and reluctant lenders.

In Inverness there are now many more fixed price properties and fewer people to trying to cash in on the offers over sales tactic. Fixed prices are now the norm all over the Scottish property market not just in Inverness. The days of people getting over 30% of the asking price are over; there was even a property in Edinburgh which went for over 100% of the asking price. The market will get back to normal in Inverness and the rest of Scotland in due course.

As part of a review of the North East property market the Publican reviewed the towns of Newcastle, Sunderland, Durham, Darlington, Hartlepool and Middlesbrough. What they found was a real mixed bag of properties ranging from the cheap and nasty to the lovely but expensive in the North East of England.  From the local on the corner to the trendy city centre bars some of the local traders were standing up well to the trading condition post credit crunch.  This coupled with strong competition from Supermarkets and the problems given by the smoking ban pubs in the North East are standing up well. The local publicans in the North Eats were also complaining that the property development plans of the local councils were also having a negative impact on them as the demolition of large housing areas meant the loss of custom. All local landlords said there was also a dramatic loss of competition due to many pubs closing down and this is unlikely to slow down for the next few years.

One of the Landlords who had worked in Darlington for 40 years in the pub trade commented that opening a pub in the North East used to be considered as a way to riches and a secure investment however those days were now long gone. He also thought that some areas in particular Newcastle had reached saturation point when it came to the sheer number of pubs.

A look at the property particulars for pubs in the Estate Agents shop window would certainly confirm this. The North East market is dominated small bottom of the market pubs, the culture of going down to the local is alive and well in the North East.

Eight of the 30 Scottish & Newcastle Pub Enterprises disposals recently announced are in the region, a large number of Admiral Disposals are in the North East and other large companies such as Punch, Enterprise, Greene King and Marston’s are making disposals in the area too.

However with disposals from the larger operators, come opportunities for the start up landlords. The North East is one of the cheapest regions in the UK to buy a pub.

According to local property agents Fleurets in December in its Survey of Price showed that leaseholds in the North East and Yorkshire area combined averaged at £55,894 in 2008 compared to the national average of £82,222.  This makes North East the cheapest place to secure a pub in the whole of England. In terms of free holds, bottom-end freeholds were £168,063 compared to a national figure of £290,440. There are areas of the country where you cannot buy a studio flat for £168,000.

Since the credit crunch however prices have fallen dramatically and with the troubles of Northern Rock in the region you could find a pub for sale in the region for between £100,000 and £175,000 for the freehold and contents is not uncommon.

With prices at that level there is likely to be a lot of new entrants to the market, some will win and some will fail. However the North East with its industrial routes will no doubt continue to support the pub trade.