An apology for absence was received from Cllr Lee Croxton.  Cllr Lauren Sullivan attended as his substitute.  An apology was also received from Cllr Alan Ridgers.

The minutes of the meeting held on Tuesday 29 August 2024 were signed by the Chair.

There were no declarations of interest.

KPMG

•           UK Economic Outlook – September 2024

RICS Reports:

•           UK Residential Market Survey

•           UK Commercial Property Monitor Q2 2024

•           UK Construction Q2 2024

The Committee were presented with an economic and property market update in the form of the KPMG report and RICS reports as of September 2024. The purpose was to share the findings of the September editions with Members and to give an overview in regard to the residential, commercial and construction market. The Estates and Valuation Manager highlighted key aspects from the publication:

• The Bank of England had reduced the base rate to 4.75% which had reinforced a commitment to economic growth, giving consumers more disposable income and facility for cheaper borrowing.  This was beneficial for home buyers and instilled confidence to businesses, allowing them to plan further investment.
• Unemployment in the UK was continuing on a downward trend and was at its lowest level since 2021.
• Trends had shown that consumers were saving a lot more money than they were spending, as a response to previously higher interest rates. The KPMG report highlighted that there was a reduction of spend on non-essential items.  This decline had been seen over the last two years.
• The Government were targeting a 1% economic growth for 2024 with an increase to 1.2% for 2025.
• The Committee were updated that the RIC report relating to commercial property, highlighted that there was great caution within the market due to recent elections and the autumn budget.  There had been an increase in the request for commercial sector landlords to provide more flexibility, in terms of lease agreements.
• A key point from the RICS report for commercial properties was that nationally the office and retail markets were continuing to struggle.  The industrial property market remained the strongest area nationwide.
• The reduction in the base rate was beneficial to home buyers within the residential market.  It was noted that estate agents nationally had seen an increase in interest for the purchase of properties.  In the rental sector, it was noted that focus had shifted from the availability of residencies to the quality of housing stock, providing residents with greater options.
• Members were informed there were levels of uncertainty in the construction industry in relation to material costs. Movement was expected once there was further clarity with the budget and intentions from Government in relations to planning regulations.
• The strongest performing asset for Gravesham was the industry portfolio with no vacancies and proactive engagement with tenants.
• Neighbourhood parades in the retail Gravesham portfolio had been performing well.

The Chair thanked the Estates and Valuation Manager for a comprehensive report and noted the reports gave the Committee a broader understanding of the national market and provided context in understand the Gravesham market.

The Chair requested a brief summary of how Gravesham compared to the national picture overall.  The Estates and Valuation Manager explained using a breakdown of each sector:

• Retail – Nationally the retail sector had seen rationalisation with some outlets moving away from the high street into smaller premises.  Although this has happened in Gravesham, a greater uptake in the neighbourhood parades had started to emerge.
• The office portfolio  ...  view the full minutes text for item 10.

To move, if required, that pursuant to Section 100A(4) of the Local Government Act 1972 that the public be excluded from any items included in Part B of the agenda because it is likely in view of the nature of the business to be transacted that if members of the public are present during those items, there would be disclosure to them.

Part B

Items likely to be considered in Private

Resolved that pursuant to Section 100A (4) of the Local Government Act 1972 that the public be excluded from the following item of business because it was likely in view of the nature of business to be transacted that, if members of the public were present during the item, there would be disclosure to them of exempt information as defined in Part 1 of Schedule 12A of the Act.

The Estates and Valuation Manager provided the Committee with an update on the Property Information Dashboard and highlighted changes since the previous Committee meeting. Members held a discussion and had their questions answered by the Estates and Valuation Manager.

The Committee noted the report.