Under the Money Laundering Regulations 2007, there is an onus on commercial property surveyors to report and reduce the levels of money laundering in the UK, and specifically London, unfortunately known as ‘the money laundering capital of the world’. According to the Home Affairs Select Committee (a group of leading cross-party MPs) the UK property market has become a safe haven for those looking to legitimise the proceeds of crime, due to its high values and poor supervision and enforcement.

Post-Brexit, yields across all property sectors saw an immediate increase, however the long-term effect of the vote was unknown. Three months later and market data shows that the average yield across all property sectors has increased to 4.86%. This being said, not all is negative: As the dust settles, market evidence is indicating that properties with a long income certain are maintaining yield at a pre-Brexit level. Many valuation firms are even going so far as to remove the statements of uncertainty added to their valuations after the EU referendum decision.

Approximately 50,000 sq ft at the Blue Fin building in Southwark is currently under offer from banking giant HSBC: 110 Southwark Street is to become home to the new FinTech hub of the global firm, who will be paying £65 per sq ft on an initial term of 10 years.

The new ratings taking place next year mean that business rates across the UK are set to increase. Historically, business rates are re-evaluated every five years, however there was a government decision to postpone the re-ratings in 2015, which means that it’s actually been seven years since they were last updated. Thus, current rates are based on the rental values set at the bottom of the 2008 market, so companies should prepare themselves for a sizeable increase next year when the new ratings take effect.

US tech giant, Apple, have agreed an extremely exciting deal to take a staggering 500,000 sq ft over six floors at the newly renovated Battersea Power Station. The company will be based in the central Boiler House and is expected to complete the move to the iconic British landmark in 2021; making it the largest office letting in the West End for 20 years.

The Thames Valley has welcomed a new crown in the jewel of its prestigious office market, with McKay Securities announcing that it has recently completed the refurbishment of 9 Greyfriars Road, which has been awarded the BREEAM ‘Outstanding’ award. An extremely rare accolade, this is the first development outside of London to receive the rating from the sustainability body. The building, priced at £34.50 per sq ft, is located in Reading and boasts an EPC A rating, making it the most sustainable building available in the South East market.

The RICS is putting increased emphasis on the importance of sustainability, and how the construction and property industry are intrinsically linked to the reduction of emissions and energy consumption. The ‘Energy Performance of Buildings Directive’ has been instrumental in raising awareness of the benefits of energy efficiency and attempts to reduce emissions from buildings. To reflect this directive, the UK Government amended part L of the Building Regulations and introduced the Energy Performance of Buildings Regulations.

The West London and Thames Valley office markets are due to maintain their strong performances over the coming months, with continuing interest from overseas investors and a diverse occupier base encouraging overall investor sentiment.

Money laundering is when the proceeds of criminal activities are disguised, or even converted, and realised as legitimate assets. It’s a hot topic at the moment, with HM Revenue and Customs (HMRC) and the Royal Institute of Chartered Surveyors (RICS) working hard to crack down on the organised crime in the UK, which currently generates a staggering £24 billion a year. Property professionals make particularly attractive targets for criminals looking to hide their ill-gotten gains, as tracking the source of money in this market is often extremely difficult. 

The past 18 months have seen rental records being shattered across the capital. St James’s achieved the global record, with prices reaching £185 per sq ft, whilst rents in SE1, midtown, The City and Canary Wharf have all increased dramatically. London is the centre for commercial real estate; rents have been on the rise for years, finally reaching a staggering 70% increase in prices seen in 2011, with a lack of supply and constant demand for space driving costs up. As such, the cost for new businesses ‘setting up shop’ in the capital has become incredibly expensive.