Apologies for absence were received from Cllrs Gurdip Ram Bungar, Lee Croxton and Samir Jassal. Cllr Alan Metcalf attended as a substitute for Cllr Samir Jassal.

The minutes of the meeting held on Wednesday 13 November 2024 were signed by the Chair.

There were no declarations of interest.

Members were presented with the RICS publication ‘Economy and Property Market Update’ February edition which provided a quarterly assessment in relation to the economy, commercial property, residential property and construction.

The Estates and Valuation Manager highlighted key aspects from the publication:-

• Inflation had increased from 2% to 3% which was mainly due to utility costs (energy and water) and research showed that it may potentially peak to 3.7% in the third quarter of the year.
• The Bank of England had agreed to keep interest rates at 4.5%. The ending of March 2025 will be an important period of time for the property market due to changes in stamp duty which will mainly affect first time buyers.
• In relation to the retail sector, vacancy rates were falling. At a national level, the vacancy rate was 18%. At a local level:-
  • the vacancy rate of St George’s Shopping Centre was 10% however a number of the units had been allocated for new projects such as co-working space and the remaining units were actively being marketed;
  • the High Street currently had no vacancies apart from one shop which was also actively being marketed.
• In relation to the property market, at a national level, yields remained at approximately 10-11% whereas Gravesham’s property investments were producing a yield of 8% with the strongest performing assets being industrial; warehouses continued to be fully let.

The Estates and Valuation Manager advised that, overall, the Council’s portfolio was performing well, void rates were continuing to fall and pro-active lease management was being undertaken. The Team would usually undertake pro-active lease management approximately 12 months in advance however this was now being conducted approximately 18 months in advance to allow more time to be given in liaising with/negotiating new terms with commercial tenants and to also give the Council’s Legal Team ample time to draft new agreements etc.

The Committee noted that, despite the national outlook/figures, Gravesham was outperforming therefore it was a prime location for people to invest and grow their businesses.

It was noted that April 2025 would see rises in both income tax and national insurance therefore concern was expressed regarding the detrimental impact this may have on businesses/commercial tenants within Gravesham. The Estates and Valuation Manager advised that the Team was proactively speaking to businesses/tenants advising them of the changes and encouraging them to forecast so that the Team can be notified, as soon as practicable, should there be a detrimental impact so that consideration can be given to what options/support may be available.

The Committee noted the updated.

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 during 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.

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 Property Information Dashboard.