FACT from fiction in the property and construction market is untangled by PHIL GRAVES, managing director of Graves Jenkins Property.

VIRTUALLY everyone has a working knowledge of property prices, but is that really a good thing?

The internet is polluted with property data and forecasts and depending which ‘expert’ advice you read, property prices are active in one direction or the other. Although that is relevant, most of the statistics are regional at best and when it comes to your property, whether it be residential or commercial, it is always recommended to seek local advice.

Brighton and Hove has almost a ‘pocket market’ for itself, not dissimilar to London, which bucks the national trend. Simply put, the location is a great place to both work and live. This is reflective in property prices and again, depending on which data you believe, we have experienced house price inflation of between 6% and 9%. Commercial property investments and rents have also generally risen, particularly in the retail and office sectors.

Finance for property purchases and particularly development is perhaps a different story. The banks still seem slow to lend and although they are open for business, have lifted their criteria demanding more equity participation, sensibly so in the majority of cases.

But the lack of lending into development could have negative effects on economic growth, which means less prospects for local employment and housing stock.

Which brings me to the current plight of the adoption of the City Plan and the reduction of budgets for the council.

The popularity of the city brings its own problems, including job opportunities and housing availability, particularly at the more affordable level. Every dated building, brownfield site and redundant parcel of land needs to be scrutinised for development possibilities to match our target for growth. Without this analysis, the city will do a u-turn in terms of economic viability and this needs to be understood very quickly by the stakeholders, both residents and the business community.

The largest concern is whether the council themselves are able to cope with future demands. The recent announcement on budget cuts of about £70,000 a day could be disastrous to many. Economic growth will be under pressure and further financial restraints to the already over exposed and challenged planning department will cause chaos with the property sector. Are we open for business or a part-time city? Speak up now or face the consequences.