Recent findings have shed light on the commercial property market in Herefordshire.
Using comprehensive data from the property listing behemoth, Rightmove, the study meticulously assessed the cost dynamics of retail, hospitality, and office spaces across the county. The full study is available for perusal here.
The research said that the average cost of purchasing a commercial property in Herefordshire is £436,710. This is a notable 22 per cent lower than the UK’s average of £560,913 and aligns closely with the West Midlands average of £445,475. However, with the new interest rates pegged at 5.25 per cent, the monthly mortgage repayment for such properties has surged to approximately £1,419. This is a significant jump from just a year ago when the interest rate was a mere 2.5 per cent, resulting in repayments of around £682.
When it comes to renting, Herefordshire offers an average monthly price of £594. This is considerably less than the monthly mortgage repayment. Breaking it down further, retail spaces in Herefordshire have a rental cost of £655, while their mortgage equivalent stands at £832. Office spaces are available for rent at £534, but if you’re looking to buy, the monthly mortgage shoots up to £1,877. Hospitality spaces have an undisclosed rental price, but their mortgage repayments are estimated at £1,429.
What’s even more compelling is that while most parts of the UK have rental prices that overshadow mortgage repayments, Herefordshire flips the script. Its low rental rates mean that mortgage repayments often come out higher. In the broader context, Herefordshire is the 3rd least expensive UK county for renting commercial property. In a comparison with neighbouring counties, Gloucestershire’s rental prices double those in Herefordshire, Shropshire nearly triples them, and Worcestershire’s are a whopping five times more expensive.
Les Roberts, Business Comparison expert at Bionic, weighed in on the findings. He said, “The data from Herefordshire underscores the rising commercial mortgage rates, potentially making renting a more attractive option. However, leases, especially during economically volatile periods, come with their own set of risks.”