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The property market has seen a busy first half of the year. Activity early in the first quarter was boosted by the changes to Stamp Duty Land Tax (SDLT), which saw a surge of transactions ahead of the 31st March deadline. And recent figures suggest that the UK property market is the strongest it’s been since 2022, with both mortgage approvals and transactions at their highest level for three years. 

Positive outlook

Continuing the good news, the commercial property market is showing encouraging signs of growth, with a study highlighting three major sectors sparking interest for investors and developers - office space, retail units and student housing. As more people return to the office, many businesses are looking to new-build sites, or to refurbish existing properties in order to cater for evolving hybrid working patterns. Rightmove has reported an increase in demand for retail commercial property, particularly in out-of-town retail parks and shopping centres. And as universities struggle with funding and increasing student numbers, there’s rising demand for purpose-built student accommodation, especially in large cities. Each project comes with its own title defects and challenges, and that’s where Countrywide can really help.

Changing dynamics 

It’s not only the types of development where we see changes and new patterns emerging. We have also seen an increase in the number of enquiries where are asked to extend cover to include additional parties with a financial interest in the development. 

For example, with a land promotion agreement between a planning promoter and a landowner, the promoter takes on the costs associated with a planning application, as well as engaging with planning authorities, residents and other stakeholder groups throughout the application process. So, if a third-party claimant successfully prevents the development, the losses suffered by the planning promoter won’t directly relate to the cost or value of the property itself. Instead, there will be abortive costs relating to professional advisors they will have appointed, such as engineers providing technical surveys, or planning consultants assisting with the planning application.

Similar abortive costs can also be incurred by an option holder. This party tends to be a developer who has signed a contract with a landowner giving them the opportunity to purchase or lease a site from the landowner within an agreed time frame. Should an injunction be granted which prevents a development taking place, the option holder will lose their upfront option fee together with costs associated with obtaining full planning consent.  

In both cases, while the title defects that we’re underwriting are the same, who our cover extends to include, and the losses that can be insured against, in the event of a third-party preventing the development, differ. 

Comprehensive insurance solutions 

Regardless of whether you’re dealing with a straightforward purchase of land for redevelopment, or a green energy supplier looking to lease land and undertake further works, we make the process of arranging legal indemnity insurance as quick and straightforward as possible. We have the most experienced underwriting team that consistently deliver a level of all-around service which is unparalleled in the legal indemnities market. We specialise in providing cover for commercial properties, offering the widest range of pre and post planning covers, such as mining and mineral rights, access, services, restrictive covenants and defective title. 

Dealing direct

We don’t deal with brokers, so to ensure your client gets a quote from the market leader, come to Countrywide directly. You don’t have to rely on any third party to relay the relevant information correctly, and there’s no added delay while you wait for responses. We’ll provide a quote that’s tailored precisely to your clients’ needs, and faster than anyone else in the market. And in the event of a claim being made once the policy has been issued, our experienced in-house Claims team will manage the entire process for the policyholder.

Our dedicated commercial property brochure provides more detail on the types of policies we can provide our commercial clients, and the service we provide. To request a copy, give our Business Development team a call on 01603 617617, or email enquiries@cli.co.uk.