S.R. Wood & Son Ltd: A Market of its own – Bury Park Luton
Article by Jacob Wood MSc – S.R. Wood & Son Ltd.
Whilst located only circa 1/3 of a mile from Luton town centre, the suburb of Bury Park – a thriving commercial district – can be considered ‘a market all of its own’ for reasons I shall outline hereunder.
In February of 2024 S.R. Wood & Son was instructed to offer 205 Dunstable Road to the open market upon a freehold basis, following a referral from a local solicitor (thank you local solicitor). This in itself was exciting because in our experience, premises within the Bury Park suburb of Luton seldom reach the open market and are instead transacted largely amongst the local Asian community – principle to principle.
From the outset of our involvement with the property, our client (who is not property savvy) was advised that the Bury Park market is buoyant but importantly, unpredictable. Furthermore, our initial appraisal of the property was somewhat speculative given the lack of market evidence in the immediate vicinity. As surveyors will know, where market evidence is not readily available in the immediate vicinity, wider areas can be considered. As such, evidence from other areas were considered and adjusted accordingly.
Following signed instructions and receipt of AML documentation, we presented the property to the open market… and so it began…
In my time as a commercial property surveyor/agent, I have never before experienced the level of enquiries that 205 Dunstable Road produced. Suffice to say, there was not enough time in the day to individually accompany each applicant around the property (this would have taken a week of back to back viewings), so an open hour viewing event was arranged.
Prior to the open hour viewing, I advised our client that we ought to make advantage of the initial demand for the property and look to close the bidding process by way of informal tender. For those who may not know, that is written offers by a pre-set time and date. This method of sale can often have a positive impact on a property’s value due to the added pressure of time and competition (increased risk of being out-bid). Furthermore, it sorts those of whom have the wherewithal to enter and complete such a transaction from those of whom do not – saving the agent and indeed vendor time, hassle and possible expense.
And so, the tender deadline arrived and S.R. Wood & Son was in receipt of multiple offers; some below, some at and some above the quoting price. After some discussions with our client, an offer is accepted. But… shortly before instructing solicitors, we receive a higher proposal. Typically, ‘gazumping’ as it is known, leaves a sour taste in everyone’s mouth and we try to avoid it where possible. That said, those who are aware of the Estate Agents Act 1979 will know that agents are legally bound to present all offers to their client, whether received in writing or verbally.
The new and higher offer was accepted by our client and solicitors were instructed. But… a further offer comes in that is even higher than the first ‘gazumping’ offer. Now it is important to note that the sum being offered is not the only thing to consider when analysing an offer. Matters such as funding (cash or mortgage), transaction history and timescale also bear importance. The aforementioned considered and after further discussions, our client instructed us to proceed with this newest proposal which was…
…21% over our initial appraisal for the property!
As of recently, the sale of the property has completed and suffice to say, the Bury Park suburb of Luton can be considered ‘a market of its own’. Where else after all (locally at least), can a property see such demand that even the ‘gazumper’ gets ‘gazumped’? Furthermore, where in today’s market (after values have typically corrected themselves following an inflationary period) can a property be sold for 21% above its asking price? The answer to these questions = Bury Park, Luton.
To conclude, comparable evidence is the ammunition by which surveyors rely and most of us will keep some sort of schedule of market evidence for valuing, rent review, lease renewal and even agency purposes. I am quite pleased to now have a single Bury Park piece of evidence within my arsenal!
S.R. Wood & Son is a family owned and operated company of commercial property surveyors, agents and valuers covering an approximate area from Leighton Buzzard, to Dunstable, Luton and across to Hitchin. Established in 1981, we have built a strong reputation in the local commercial property industry – being that of professionalism, trust and integrity. Please contact us today for assistance with your commercial property needs.
You can see all of S.R. Wood & Son’s commercial property listed on NovaLoca here.
