Businesses want their own homes

BUSINESSES are buying business homes – the commercial developer Business Homes Cala reports a continuing demand from companies looking to buy their own premises, writes James Dow.

Those looking to buy are taking a medium- to long-term view and most are acquiring the properties via the traditional route of commercial mortgages.

However, many others are buying offices as a long-term

Houlston: Strong demand

investment by placing them into the property element of a Self Invested Personal Pension Scheme (SIPP).

James Houlston, managing director of Business Homes, says the trend has led to strong demand across the developer’s business parks in Aberdeen, Dunfermline, East Kilbride, Edinburgh and Glasgow, where a range of units is available from 1,250sq ft to 6,000sq ft.

“We have ten schemes in Scotland at the moment and are experiencing high demand from people wanting to buy property from across the region,” he said.

Independent research commissioned by Business Homes suggests that in mortgage terms alone, the savings on purchase could slash the effective cost of a 3,000sq ft office from £17 per sq ft a year, to just £10.35p per sq ft with an interest-only loan.

The savings on a similar-sized office for a capital and interest mortgage would bring the effective annual rental down to £13.05p per sq ft.