Business
Occupier demand for commercial property in Wales rises for first time in two years
OCCUPIER demand for commercial property in Wales rose for the first time in almost two years according to the latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor, as demand for industrial space remained strong and demand for retail space turned positive for the first time since well before the pandemic.
A net balance of 8% of surveyors in Wales reported that occupier demand at all-sector level had risen through Q1 2024. Broken down by subsector, demand for both industrial and retail space rose (net balances of 31% and 9% respectively), with retail having risen for the first time since 2017. A net balance of -15% of Welsh respondents reported that demand for office space had fallen.
Looking at overall investor demand, a net balance of -13% of respondents in Wales reported a fall. Whilst this balance remains in negative territory, it is an improvement on -32% in the previous quarter due to a less negative picture for retail. Looking at the subsectors, investor enquiries for industrial space fell flat, whilst both office and rental space saw declines, with net balances of -31% and -9% respectively. The later was an improvement from -47% in the previous quarter.
Regarding capital value expectations, on the three-month outlook, a net balance of 7% of respondents expect capital values to rise over the next quarter, the highest this balance has been since mid-2019. A net balance of 38% of respondents anticipate that capital values for industrial space will rise over the next three months, whilst net balances for both retail (-9%) and office (-8%) space remain more subdued. On the twelve-month picture, surveyors in Wales anticipate that capital values will fall flat over the next year.
With regard to rental expectations, a net balance of 4% of surveyors in Wales expects rents to rise over the next quarter. A net balance of 46% of Welsh respondents anticipates that rents will rise for industrial space, whilst rents for office and retail space are expected to fall (net balances of -8% and -27% respectively). On a 12-month horizon, surveyors anticipate that rents will fall at all-sector level with -5% of respondents expecting a decline.
Chris Sutton of Sutton Consulting Ltd in Cardiff commented: “Industrial rents continue to strengthen for Grade A new-build floorspace at St Modwen Park, Newport with £8.75 per sq. ft achieved and quoting rents now over £9.00 per sq. ft. Only three years ago, rents on the same estate were £6.50 per sq. ft. The office market continues to adapt to changing working patterns with occupiers shifting to higher quality floorspace, with a focus upon Cardiff city centre. The lack of shovel-ready employment sites along the M4 corridor is a constraint on the economy.”
Commenting on the UK picture, RICS Senior Economist, Tarrant Parsons, said: “Although sentiment remains relatively cautious regarding the near-term outlook across the UK commercial property market, the latest survey results do show some signs of recovery coming through. For one, occupier demand growth now appears to be gaining traction slightly, supported by the broader economy seemingly returning to growth following a brief recession late last year. Moreover, the prospect of interest rate cuts later this year have already led to an easing in credit conditions across the sector, marking the first such improvement in our feedback since 2021.
This should begin to support investment market activity as the year wears on, which, in turn, will likely see a more stable picture emerge for headline capital values.”
Business
Kurtz praises Pembrokeshire Ports for rising to the challenge
SHADOW MINISTER for Economy and Energy and Senedd Member for Carmarthen West and South Pembrokeshire, Samuel Kurtz, has commended Pembrokeshire’s ports and ferry operators in the Senedd for their exceptional response in managing increased traffic following severe disruptions at Holyhead Port.
The disruption, caused by Storm Darrah, brought winds of up to 96 mph in early December, causing widespread damage across Wales and significantly impacting Holyhead Port.
As one of the UK’s busiest ports, Holyhead typically handles 2 million passengers annually and serves as a critical link to Ireland for commercial shipping and ferry services.
In response to Holyhead’s temporary closure, Pembroke Port and Fishguard Harbour, along with ferry operators, stepped up to ensure the seamless movement of goods and passengers. Key vessels involved in this effort included Irish Ferries’ James Joyce and Isle of Innisfree, alongside Stena Line’s Stena Nordica and Stena Adventurer, which sailed from Pembrokeshire’s ports to support transportation needs.
Samuel Kurtz, who previously worked onboard ships on the Fishguard to Rosslare crossing, said following a statement in the Senedd Chamber: “The performance of Pembrokeshire’s ports and ferry operators during this time of increased demand has been nothing short of remarkable. The contributions of vessels such as Irish Ferries’ James Joyce and Isle of Innisfree, and Stena Line’s Stena Nordica and Stena Adventurer, underscore the strategic importance of our region in maintaining Wales’ economic resilience and connectivity.
“While we look forward to Holyhead Port resuming full operations, Pembrokeshire’s ports and ferries have proven their readiness to rise to the occasion, ensuring that Wales remains open for business. This southern corridor from Pembrokeshire to Rosslare has demonstrated its importance.
“This success is a direct result of the dedication, skill, and professionalism of the men and women who operate our ports and ferries. Their hard work deserves our deepest gratitude, as they have played a vital role in minimising disruption and safeguarding the flow of trade and travel during these uncertain times.”
Business
Land purchase opens door to new West Wales homes
A MAJOR developer has purchased land in Saundersfoot, clearing the way for it to bring new homes to the town.
Persimmon Homes West Wales secured planning permission to build 72 new, high-quality homes at Sandy Hill in the popular Pembrokeshire town back in July.
This agreement means all the pieces are in place for the builder to start works on site, with a view to having their first properties on the market this summer.
The scheme includes a mix of quality new one to four-bed detached and semi-detached homes as well as terraced houses and apartments that will help meet local housing needs and open the door to home ownership for more local families. The properties will be finished in render and stone.
Boasting a number of proposed community benefits, the development will bring a range of facilities to the local community, including an equipped play area at the heart of the site, contributions to highway and active travel upgrades, and a dedicated active travel link that connects the site back to Sandy Hill Road.
The design also incorporates a sustainable drainage system with bio-retention areas and rain gardens, green technologies such as solar panels and electric vehicle charging points, as well as ecological enhancements to mitigate impacts on dormouse habitats and preserve existing trees and hedgerows.
As part of the housebuilder’s community contribution, Persimmon will also transfer 35% of the homes (25 in total) to a local housing provider for rent and shared ownership to help alleviate pressure on Pembrokeshire’s housing list.
The five-star developer donates £48,000 across Wales each year to good causes and much-valued organisations as part of its Community Champions initiative. Recent local recipients include Saundersfoot Cricket Club, Saundersfoot Rotary Club’s Tenderfoot programme, and the 2025 Saundersfoot New Year’s Swim.
Welcoming the agreement, Persimmon Homes West Wales’ Managing Director, Stuart Phillips, said:
“We are delighted to have cleared this final hurdle that now means we can commence works at Sandy Hill to deliver much-needed new, high-quality homes to Saundersfoot.
“Persimmon is determined to leave a positive and lasting legacy where we build and we look forward to working with the local community and its leaders as we bring forward these new homes.
“I want to give my thanks to everyone involved in the Persimmon team as well as the local planning authority for all the work they’ve put in to get to this point.”
Business
UK, 3 in 10 Britons in economic difficulty. Purchasing power down 41% since 2004
The people who have the most problems are women (30%) and are between 35 and 49 years old (39%)
The purchasing power in the UK has dropped by 41% over the last 20 years. Today, £100,000 left in a bank account since 2004 without being invested would now be worth £59,021.
This figure is one of the findings from a study conducted by Tickmill, an international online trading broker that compared the economic situation in the UK and the European Union through the infographic “Purchasing Power and Cost of Living: UK vs EU”.
The analysis reveals a slight decline of 0.4% in the UK’s purchasing power, which currently stands at £41,573. In contrast, the European Union has seen a modest rise of 0.1%, reaching £40,874.
Why is purchasing power declining in the UK? One key factor is the cost of living. If the UK were still part of the European Union, it would rank as the fifth most expensive country, behind Ireland, Luxembourg, Denmark, and the Netherlands.
Unsurprisingly, 3 in 10 Britons are struggling with the cost of living. Women (3 in 10, compared to 25% of men), those aged between 35 and 49 (4 in 10), households earning less than £15,000 (6 in 10), and single parents (1 in 2) are among the most affected groups.
Among UK nations, Northern Ireland is the hardest hit, with 34% of its population facing financial difficulties, followed by Wales (31%), England (28%), and Scotland (22%). In England, the North East has the highest percentage of people struggling, with 4 in 10 residents affected. Even in London, the high costs impact 1 in 4 adults.
In response to these challenges, Britons are making significant adjustments:
- 53% have cut back or delayed spending on smaller items like eating out, entertainment, subscriptions, clothing, toys, books, etc.;
- 52% have reduced household energy consumption;
- 48% have decreased their grocery spending;
- 41% have scaled back or postponed major expenditures, such as holidays, cars, and weddings;
- 26% are working longer hours, taking on overtime, or pursuing additional jobs to earn extra income.
The British also made changes on the financial side. One in four adults has been forced to dip into their savings or investments to cover daily expenses. Moreover, 44% have stopped saving or investing entirely or have reduced their savings and investments—a 4% increase compared to 2023.
The lack of investment is another critical factor contributing to the decline in purchasing power. It is estimated that 13 million UK residents hold £430 billion in cash deposits but do not invest. The reasons? Seventy-four percent say they cannot compare investment products effectively, and 43% are afraid of losing their money.
A lack of knowledge and fear are preventing many savers from taking advantage of an important opportunity: preserving or increasing their purchasing power in the long term.
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