The demand for freehold properties was illustrated when all 20 units at Chancerygate Business Centre in Hayes were sold or leased before a single brick had been laid. "It is going very well" says Charlie Withers. "We sold all our units at our Slough Interchange Scheme and 80% of units have gone at Langley."
He adds that businesses are realising that loan payments on their own premises can be up to 50% cheaper than the rent on the building. Just as importantly, they do not have to be tied to a landlord. "Purchasing a building can also be a form of tax investment" says Withers. "If someone buys through a self-invested personal pension (SIPP), the directors of the company are members of the pension scheme. "The SIPP scheme effectively owns the building, which is leased to the company and the rent covers the loan repayments." A freehold property is counted as an asset on the balance sheet, while the value of a lease is shown as a liability. Keith Wise, partner as Campbell Gordon in Reading, said "These units fill a gap in the market and give small occupiers a chance to get their own front door, often at a price comparable to buying a house." "The market for these units in Berkshire has been strong in the past and there is still latent demand. This is because freehold provides greater certainty about costs and is an investment opportunity for both the developer and buyer."