Year in Review: Insights, Evidence & What's Next

2025 Insights

• A tenant-led market saw occupiers prioritise location over specification, targeting secondary space to reduce costs, while landlords had to adopt more flexible and creative approaches to secure lettings.
• There was strong demand for units under 5,000 sq ft across inner London, with occupiers actively seeking both new Grade A accommodation and well-presented secondary or refurbished space.
• Occupiers were increasingly demanding higher power capacity to support automation, robotics and EV fleets, meaning locations with strong grid availability were highly sought after and commanded a premium.

These trends became particularly clear when looking at our activity over the past year:

Units 6 & 8, Forest Trading Estate, Priestley Way, Walthamstow, E17 6AL

The demand for smaller units has been a defining feature of the inner London market, with occupiers showing flexibility around specification in return for the right location and value. Earlier this year, this trend was reflected in our successful letting of a refurbished warehouse to Crowbond, an established grocery distribution business, demonstrating how a well-presented space continues to attract strong covenant occupiers seeking practical, efficiently sized accommodation.

Switch 74, 43 Suez Road, Enfield, EN3 7SN

The shift towards power-hungry operations has placed a clear premium on assets with strong grid capacity and future-proofed infrastructure. A clear example is Switch 74, a well-specified new build unit featuring low site coverage, high eaves and a solar PV system, which offers significant power capacity and was placed under offer just a few months after practical completion, underlining how quickly the market responds to buildings that meet these evolving operational demands.

Langhedge Industrial Estate, Langhedge Lane, Edmonton, Tottenham, N18 2TQ

The tenant-led dynamic has been clearly reflected at Langhedge Industrial Estate in Tottenham, where value-driven occupiers have favoured well-located, refurbished space over higher-spec alternatives. Units ranging from 900 to 7,500 sq ft have seen strong demand, with 10 lettings completed throughout 2025, demonstrating how competitively priced stock combined with a flexible, pragmatic landlord approach continues to outperform in a cost-conscious market.

Looking to 2026

• We expect stronger demand for Grade A mid-box warehouses across North and East London.
• While supply is currently ample, landlords who offer flexible lease terms and incentives are likely to attract strong occupiers and help ease the imbalance.

2025 Insights

• Rising borrowing costs and regulatory and policy changes have made it increasingly challenging for developers to deliver schemes.
• Buying power within the wider development market has weakened, leading to greater caution in an uncertain environment.

Our Land team saw this first hand through a number of instructions completed in 2025, including the following:

Rom Valley Gardens, Rom Valley Way, Romford, RM7 0AE

At Rom Valley in Romford, Strettons successfully sold a cleared 7-acre former ice-skating rink site with hybrid planning consent for 972 dwellings on behalf of the LPA Receivers. Against a backdrop of rising borrowing costs and a more cautious development market, the sale highlights the continued demand for strategically significant development sites. The purchaser will review the existing consent, enabling a mixed-use, residential-led scheme that will bring much-needed new homes and amenities to the area, supporting Romford’s ongoing regeneration.

Sinclair's Laundry, 199 Brettenham Road, Edmonton, London, N18 2HF

Strettons exchanged an acre site which consisted of several buildings; a single storey brick north lit warehouse, two storey building and a single storey metal clad warehouse. The site has historically been used as a commercial laundry. A sale was agreed with a studio operator whose goal was to convert and refurbish the site. In a market where rising borrowing costs and regulatory changed are creating greater caution, interest came from both residential and commercial developers as well as commercial businesses, reflecting the strong demand for well-located, flexible assets that can adapt to evolving market conditions.

Crown And Mayer Parry Wharf Bidder Street Canning Town London E16 4ST

Strettons has agreed the sale of a 4.65-acre former scrap yard at Crown Wharf to a joint venture between L&G and Goldacre Ventures, subject to planning approval for a 1 million sq ft urban hyperscale data centre. In a development market tempered by rising borrowing costs and regulatory uncertainty, this scheme represents a creative alternative to heavy manufacturing, delivering employment opportunities and integrating carefully within the surrounding residential area. The sale highlights how well-located, flexible sites continue to attract forward-thinking investors despite wider market caution.

Looking to 2026

• Whether landowners or buyers, we have observed a shift towards unlocking opportunities through alternative avenues. This includes exploring diverse and adaptive uses, positioning 2026 with a favourable perspective. The focus is on maximising viability not only financially but also socially aligning with wider regeneration ambitions. With innovation, flexibility, and strategies focused on long-term viability and resilience, 2026 is poised to become a year of renewed growth for the sector. 

2025 Insights

• New residential-led development, especially urban flats, remained challenging due to higher borrowing and construction costs, alongside weaker property values. As a result, new-build activity was low, making the Government’s target of 1.5 million homes by the end of this Parliament increasingly ambitious.
• Delivering affordable housing at scale became more reliant on significant grant funding. Even so, the market shifted, with ‘for-profit’ housing associations taking a larger role, while traditional non-profit associations developing less. This was partly due to repair and maintenance burdens and a reluctance to take on Section 106 packages.
• Demand for shared ownership homes remained steady, with stronger interest for houses located in outer urban areas.

These trends played out across several Strettons instructions throughout the year:

Portfolio of Almost 180 Affordable Homes Acquired from National Householder

We provided valuation advice as part of the team’s growing national coverage to support the acquisition and funding of nearly 180 affordable homes from a national housebuilder, ensuring the client could invest with clarity and confidence. The  work played a role in enabling the transfer of these homes into long-term affordable provision, helping strengthen community stability and widening access to secure, good-quality housing. By underpinning the financial case for the deal, our valuations supported an outcome that will deliver meaningful social impact, giving hundreds of households improved affordability, greater security and a pathway to better opportunities. 

London Regeneration

Strettons was appointed to assess the viability of acquiring a large affordable housing package of over 400 homes within a wider London regeneration scheme delivering more than 1,000 units. The homes spanned multiple blocks and tenures, including social rent, shared ownership, and specialist equity products, under typical Section 106 terms. Our role was to determine whether the proposed package price was supportable using an Existing Use Value for Social Housing (EUV-SH) approach, considering long-term income, operational allowances, and comparable Registered Provider transactions. A key factor was the scale of grant funding, covering around 40% of the package value. This support reduced reliance on rental income, ensured genuinely affordable rents, and improved deliverability in London’s high-cost market. With grant applied, the package value was deemed supportable, giving the client confidence to proceed with an offer.

London Borough Disposals

The Development Consultancy team advised a London borough on the potential disposal of up to 20 existing assets to help generate much-needed revenue. Our work involved assessing both the current commercial use value of each property and their wider development potential for future residential use. Drawing on this analysis, we recommended the most suitable disposal routes to maximise returns and support the borough’s strategic objectives. Following our advice, we successfully connected the client with other specialist teams within the business to progress the next stages and ensure a smooth, well-coordinated disposal process. 

Looking to 2026

• Housing targets: The Government has acknowledged it is off track to meet its housing targets, with it increasingly clear that, without major market shifts, current measures such as planning reform, green belt development and increased funding will still fall short of delivering the required numbers.
• Mortgage rates: Mortgage rates are expected to ease further, but not enough to overcome the fundamental challenges facing the housing market.
• Regulatory reform: The full impact of the Government’s landlord and tenant reforms, alongside changes to leasehold home ownership, is expected to become clearer over the course of 2026.

2025 Insights

• UK house prices rose steadily in 2025, with the average home increasing by around 1.8% to 2.6%, reaching a value of approximately £270k–£273k.
• Mortgage approvals remain relatively unchanged year-on-year, indicating steady but not expanding demand.
• In 2025, the Bank of England reduced the base rate from 4.75% in February to 3.75% by December. These cuts have prompted mortgage lenders to lower their pricing, making borrowing slightly cheaper.

These trends played out across several Strettons instructions throughout the year:

184, Grange Road, Ilford, Redbridge, IG1 1HB 

In September 2025, our Residential Agency team sold a three-bedroom mid-terrace in Ilford for £480,000, £5,000 above the asking price, despite being marketed with six other local agents. This success comes against a backdrop of modest house price growth and recent Bank of England rate cuts, showing that well-positioned properties can still attract competitive bids and strong results.

28 Gedeney Road, Tottenham, N17 7DY 

A four-bedroom end of terrace in Tottenham, initially marketed elsewhere without success, was taken on by Strettons in June 2025 and sold within four weeks for £500,000, £25,000 above the asking price. This demonstrates that even in a year of modest house price growth and easing mortgage rates, motivated buyers are active in the market, and effective agency marketing can secure strong results.

16 Daventry Avenue, London, E17 9AQ 

In March, the team sold a fully refurbished four-bedroom mid-terrace family home, achieving a subject-to-contract price of £800,000. The story behind this sale is a great example of long-term client relationships: back in 2021, our head of Residential Agency, Bryn, received a call from a client he had never spoken to before. He was considering a property in the area with strong development potential, so we had an in-depth conversation about local market trends, potential values, and advice. Four years later, he reached out again and, after a long negotiation and redevelopment, he had purchased the site, added another property, and wanted us to market both. We’ve now sold one, with the second following soon.

Looking to 2026

• Further house price growth is anticipated with a forecast of 2.5% annual growth by Q4 2026.
• Lower mortgage costs are expected with interest rates anticipated to drop further. 

2025 Insights

• Demand in the office sector remained polarised in 2025. We saw a notable uptick in demand for well located City, Mid Town and West End office opportunities of scale that were capable of delivering best in class accommodation and where rental tones and exit values could support the high costs of development and refurbishment. Smaller, secondary inner London locations, as well as stock in outer London Boroughs, however, saw considerably more muted office investor interest, predominantly due to viability constraints and higher levels of supply across those sub-markets. Many of these assets at 10k sq.ft + were being explored for alternative, living-sector and hotel uses – or by owner occupier purchasers seeking to capitalise on re-based pricing. 
• Retail investor demand remained resilient throughout the year across Greater London for a range of asset types including individual shops with residential upper parts and small parades – particularly where presenting scope for refurbishment and anticipated rental growth.  Investor appetite was underpinned by good underlying tenant demand in the retail and F&B sectors and signs of retail rental growth following re-basing of rents post Covid, as well as residential rental growth.
• Demand for long leasehold commercial assets – whether vacant or investment - was more muted in 2025 largely as a result in challenges in raising finance – particularly on larger, and vacant stock where configuration of the accommodation presented constraints in terms of ability to sub-divide; or planning / user restrictions limited the potential occupier base. With the volume and choice of investment opportunities in the market, investors preferred to acquire freehold assets and this resulted in a significant yield differential between similar grade freehold and long leasehold opportunities.

These trends played out across several Strettons instructions throughout the year:

361–373 City Road, Islington, EC1

This instruction closely reflects the polarisation seen in the office investment market during 2025. While the building benefits from scale, location and income, investor sentiment around secondary and transitional office stock remained cautious, particularly where refurbishment costs challenged commercial viability. As a result, the majority of interest focused not on the existing office use, but on alternative living-sector strategies, including residential, co-living and hotel-led repositioning. Our ability to target a broad range of commercial and living-sector buyers generated strong competition, ultimately securing a sale to an investor now actively exploring a residential-led reuse of the asset—mirroring the wider trend of office buildings being reassessed through a mixed-use or living-sector lens.

13 Artillery Lane, Spitalfields, E1

The sale of Artillery Lane demonstrates the continued resilience of retail-led mixed-use investments in well-located London neighbourhoods. Investor appetite remained strong for assets combining active ground-floor retail and leisure uses with clear refurbishment and rental growth potential, particularly where residential conversion optionality exists. Competitive bidding drove pricing 15% above guide, reflecting confidence in rebased retail rents, improving occupational demand and the long-term value of residential upper parts. This transaction aligns with 2025’s trend of investors selectively backing retail assets that combine income security with asset management and alternative-use upside.

Red Lion Row, Whitechapel, E1

This instruction highlights the more muted demand for long leasehold commercial stock in 2025, particularly where vacant space, configuration constraints and financing challenges limited the traditional investor pool. Rather than a conventional yield-driven buyer, the asset attracted an owner-occupier and mission-led purchaser, seeking to use the space operationally rather than purely as an investment. The successful sale to a charitable enterprise reflects a wider market pattern, where long leasehold assets increasingly found liquidity through occupiers or specialist buyers able to take a longer-term, non-investment-led view—especially in mixed-use, placemaking-led schemes.

Looking to 2026

• We have been in an incredibly turbulent and inconsistent market over the past 12 months, largely mirroring aspects of sentiment seen throughout 2023 & 2024. As we closed out 2025, we saw pent up demand for a wide variety of investment assets – in part as a result of the pause on the market arising from the late budget statement. The absence of any material tax changes for commercial investment assets in the Autumn Statement combined with lowering inflation markers, the 0.25% base rate reduction in December and further anticipated easing of BoE base rate presents a far more positive investment outlook for 2026.
• We anticipate mixed fortunes across the offices sector, seeing a continued investor focus on prime Central London stock and development / refurbishment opportunities of scale capable of delivering best in class office space driven by strong occupier demand and underpinned by resilient market rents. This will contrast with secondary and tertiary stock where development / refurbishment costs are likely to continue to present viability barriers in existing use, and where living sector and hotel conversion will continue to drive purchaser interest. Owner occupier demand will also continue to provide a key focus for smaller office assets of < 20,000 sq.ft.
• Retail investor demand will continue into 2026 across a variety of asset type and lot sizes–with affluent London suburbs remaining active off the back of strong levels of occupier enquiries and demand, and a return to retail rental growth as well as underlying residential rental growth for mixed use assets. 

2025 Insights

• UK commercial property insurance rates continued their downward trend (seventh straight quarterly drop) driven by insurer profitability, lower reinsurance costs, expanded market capacity from new entrants and aggressive competition across the market. Overall, commercial property rates saw a year-on-year reduction of circa 10% (Q3), which enabled the broker fraternity to negotiate better terms including higher policy limits at predominately cost natural rates for clients. It is envisaged that premium rates will continue to soften until mid-year 2026 at the earliest.
• Insurers increasingly rewarded proactive risk management through smart technologies or Environmental, Social and Governance (ESG) integration. The adoption of smart sensors, AI powered leak-detection systems and automated shutoffs not only prevented losses, but also demonstrated compliance, allowing insurers to offer broader cover and pricing. At the same time, the integration of ESG criteria into underwriting rewarded policyholders who carried out sustainable retrofits, particularly in response to increasing wet winters driven by climate change.
• Climate change has continued to amplify the frequency and severity of events such as floods, storms and wildfires which resulted in insurers implementing satellite based modelling and real time mitigation advice.

While new business success in 2025 was limited and therefore did not directly illustrate the market trends outlined above, the ongoing soft market, characterised by premium reductions and increased capacity, created a valuable opportunity for the insurance team to reassess pricing and correct historic rating inconsistencies, ensuring fair, competitive, and market-aligned outcomes for clients.

This environment enabled a comprehensive review of the existing Strettons insurance portfolio. As a result, renewal retention has strengthened materially, positioning the team well to refocus on new business growth in 2026.

Looking to 2026

• We anticipate weather related claims will continue to have a substantial impact on insurers Combined Operating Ratio (COR) which will result in insurers focusing on their flood and subsidence exposures by means of mandatory resilience measurers (e.g. flood barriers, green roofs) and increased excesses / deductible in high-risk post codes.
• Widespread adoption of AI underwriting, real-time satellite imagery and machine-learning models is expected to dramatically improve risk selection, reduce underinsurance, and enable faster claims processing. These technologies will reduce reinsurance costs and enable insurers to maintain profits in an increasingly soft and competitive market.
• Driven by FCA Consumer Duty and new captive regulation, insurers will integrate sustainability (green) scores directly into their pricing and capacity models.  This will result in dirty, high-polluting assets potentially becoming too expensive or impossible to insure, whilst at the same time, it will ensure properties in high-risk areas because of climate change will have access to cheaper adequate insurance cover.

2025 Insights

• In general, we saw an uptick in lenders appointing us earlier in the distress cycle. Rising interest (holding) costs for lenders and covenant breaches meant lenders were less inclined to leniency toward borrowers, favouring swift asset control to protect value.
• Development assets dominated appointments: LPA receiverships were concentrated in challenged sectors, notably part-completed developments. The main reasons were funding gaps caused by construction cost inflation and higher interest rates, as well as delays caused by building control and utility connections.
• We saw a greater focus on rapid disposal than value preservation: Quick sales reduce exposure, release capital, and avoid the risk of further value deterioration. Holding distressed assets carries ongoing costs – finance, security, insurance, and capex. However, some circumstances meant that certain appointments focused on stabilisation strategies to maximise recoveries in a subdued market. This required the Strettons Receivership and Recovery team to use their asset management skills, not just disposal expertise.
• Surprisingly, we saw less sympathy for borrowers/tenants from judges in possession proceedings. Conversely, we also saw more cases where borrowers made legal claims that their unregulated business loans secured against residential property were regulated loans. In the last couple of years, we have seen a number of cases where borrowers have tried to challenge or delay action by us as receivers, which has simply increased costs. Most of these challenges fail and, had the borrowers co-operated with our attempts to work with them, they would have exited with equity. This has included prime substantial Central London residential properties.
• We saw an increase in the number of instances where borrowers attempted to run litigation in person, using AI generated claims; again, we have seen that judges can be unsympathetic to this.

These trends became particularly clear when looking at our activity over the past year:

Mill Industrial Estate & Site, Burnley, Lancashire 

An example of development-led distress and stabilisation over disposal was this established industrial estate of c 78,000 ft2 with a number of older existing tenanted buildings, a terrace of recently constructed units and a further terrace of part completed industrial units.  The receivership was occasioned by the unfortunate death of the borrower company’s sole director intestate leaving the lender exposed.  With the co-operation of other family members, we raised funding to complete the part finished units, allowing them to be let.  At the same time, we obtained all of the outstanding Building Regulations and warranty certification, to allow a refinance. 

Leeds Portfolio

Early intervention and rapid disposal was highlighted when the Receivership & Recovery team were appointed on a residential portfolio of 14 buy-to-let properties in Leeds, which had to be inspected in a very short timescale. The portfolio was sold as one lot in Strettons’ July 2025 auction for £2.23m resulting in a full recovery for the lender within 2 months from appointment to completion; the speed being necessary to restrict default interest.

One Bishopsgate Plaza, 80 Houndsditch, London, EC3A

Reflecting the insight around borrower cooperation versus challenge, particularly in high-value residential assets, this instruction on the 36th floor of the iconic One Bishopsgate Plaza, was an exceptional apartment for luxury London living. Strettons won the borrowers’ trust, and they did not interfere with our marketing strategy which ran concurrently with their refinance proposal. The apartment was listed in one of Strettons' 2025 auctions which encouraged the borrower to complete their refinance resulting in a full recovery for the lender within 3 months from the appointment.

Looking to 2026

• We anticipate LPA appointments to continue to be steady in 2026, given the amount of short-term lending out there, but with more complex appointments.
• The new Renters' Rights Act 2025 is not expected to help increasing affordability pressure in the residential rental market, which is already putting more strain on borrowers.

2025 Insights

• Realistic pricing drives competitive bidding: Buyers in 2025 were disciplined, but when lots were sensibly guided, competition followed, often pushing prices well beyond expectations.
• London remains the engine of demand: Despite wider market headwinds, London, particularly North and East London, remained the backbone of auction activity throughout 2025.
• Auctions excel for non-standard and specialist assets: 2025 once again underlined the strength of auctions for assets that don’t fit neatly into conventional valuation models.

2025 proved to be a year defined by realism, resilience and results in the auction market. While buyer sentiment remained cautious, confidence returned where pricing was right and fundamentals were strong. That balance shaped activity across our national catalogues and delivered consistently robust outcomes.

In Stoke Newington, a vacant freehold terraced property arranged as three flats sold for £1.16m against a £900,000 guide. A three-bedroom house in Forest Gate achieved £511,000 off a £365,000 guide, highlighting strong demand for refurbishment-led residential opportunities. The standout result of the year came in December, when a vacant freehold car park in Plumstead sold for £1.425m against a £375,000 guide, following sustained developer interest, demonstrating that auctions continue to reward realism. Well-priced stock consistently unlocks competitive bidding and strong outcomes.

Highlighting the trend that well-located London stock continues to attract capital, especially where there is income, redevelopment potential, or flexibility of use, a mixed-use investment on Leyton High Road, producing £91,800 per annum, sold for £1.15m, £100,000 above guide. Similarly, a vacant office building in Acton with development potential achieved £950,000, demonstrating appetite for repurposing opportunities. Residential and mixed-use freeholds repeatedly outperformed, reinforcing London’s depth of demand where connectivity and fundamentals are strong.

Demonstrating the trend of auctions remaining the go-to route for price discovery on unusual, secondary or specialist assets, development plots, garage sites and unusual lots consistently exceeded expectations. September’s catalogue showcased the breadth of demand, including Grade II listed red telephone boxes, drawing strong interest precisely because of their rarity.

Looking to 2026

• Steady volumes, resilient demand: Auction supply is expected to remain consistent, supported by local authorities, lenders, corporate sellers and private owners seeking speed and certainty.
• Disciplined buyers: Investors will remain active but cautious, with competitive bidding focused on realistically guided lots offering clear income or redevelopment potential.
• Polarised pricing: Freehold assets, particularly residential and mixed-use, are expected to continue outperforming leasehold stock.
• Improving confidence: Gradually easing interest rates should support sentiment, even as affordability and regulation remain structural challenges in London.
• Overall, 2026 is expected to be a solid and stable year for auctions, with success increasingly driven by quality, pricing accuracy and expert guidance rather than optimism alone.
• Our next auction takes place on Thursday 19 February 2026, and early interest suggests buyer appetite remains firmly in place.

2025 Valuations Insights: 

• Valuation activity increased as lending and restructuring decisions accelerated: In 2025, valuation and lease advisory activity increased as both lenders and property owners sought greater certainty in a shifting economic and fiscal environment. While lending volumes improved during the year, a growing share of instructions was driven by strategic asset reviews, refinancing and restructuring decisions, particularly in response to budget measures. Valuations were increasingly being used as a decision-making tool, rather than simply a compliance requirement.
• Broader asset mix reflects changing use and risk profiles: Demand for Red Book valuations extended well beyond traditional commercial stock in 2025. Clients increasingly required advice on mixed-use schemes, alternative-use assets and transitional properties, reflecting the ongoing evolution of occupational demand and redevelopment potential across the market. This broadening of asset types highlighted the importance of informed risk assessment and valuation insight in an environment where use, income and exit strategies are less predictable.
• Greater emphasis on speed, accuracy and advisory-led insight: As transaction and funding timelines continued to tighten, clients placed heightened importance on timely, accurate and well-contextualised valuation advice. Beyond headline figures, there was growing demand for interpretation, scenario analysis and lease advisory input to support strategic decisions. In 2025, this reinforced the role of integrated valuation and lease advisory services that combined technical compliance with clear, commercially grounded guidance.

2025 Lease Advisory Insights: 

• Government’s Proposed Ban on Upwards-Only Rent Review: The government has recently proposed a ban on upwards-only rent reviews within commercial leases. This initiative has garnered considerable scrutiny, prompting stakeholders to gain a deeper understanding of the intricacies associated with commercial leases. While the proposed ban has not yet had a tangible impact on the market, it has sparked increased discussions surrounding rent structures, particularly inflation or index-linked reviews. These discussions reflect a shift in how landlords and tenants negotiate lease terms, as parties consider more flexible arrangements in light of economic uncertainties.
• Impact of COVID-19 on Rent Reviews and Lease Renewals: Many negotiated rent reviews and lease renewals have been influenced by passing rents established during the challenging economic landscape of 2020 due to the COVID-19 pandemic. Interestingly, despite the hardships faced by many sectors, there has been notable rental growth across most regions and sectors in the UK. This upward trend can be attributed to several factors, including a resurgence in consumer demand, a general instability in supply chains, and rising operational costs that affect rental agreements.
• Dynamics of Residential vs. Commercial Rental Growth: The dynamics of supply and demand have had a pronounced impact on the rental landscape, with growth in residential rents significantly outpacing that of commercial rentals within the Greater London boroughs. This phenomenon can be partly attributed to the post-pandemic shift in living and working patterns, as more people seek residential properties in urban areas, thereby increasing competition and driving up prices. Conversely, the commercial sector continues to navigate uncertainties, resulting in a comparatively slower growth rate.

These trends became particularly clear when looking at our activity over the past year:

In 2025, valuations increasingly underpinned funding and asset strategy decisions, particularly for large, high-value assets. During the year, we were instructed to provide a full Red Book valuation of a landmark Central London office building valued in excess of £100 million. With investor sentiment and occupational demand evolving, the instruction required detailed market analysis. Our valuation supported key funding discussions and helped shape the client’s strategic approach to the asset, reflecting the growing role of valuations beyond compliance.

The year saw growing valuation demand for assets outside traditional commercial sectors, as lenders and operators assessed risk and performance across a broader property spectrum. Our team valued a leisure destination golf venue, aligning with increased interest in alternative, experience-led properties. The valuation enabled the client to benchmark performance and assess future growth, illustrating how non-traditional assets are now firmly within mainstream valuation and lending considerations.

As clients navigated regulatory and fiscal change, portfolio-wide valuations became increasingly important to support restructuring and long-term planning. We undertook several large multi-asset portfolio valuations covering residential, office, retail, industrial and mixed-use properties for both private and corporate clients. These instructions highlighted the need for cohesive valuation and lease advisory input, supporting timely decision-making across compliance, restructuring and strategic planning.

Looking to 2026

• Continued growth in valuation activity across mainstream and alternative sectors: Momentum remains strong and we expect further acceleration as clients seek clarity in a changing policy and lending environment.
• Increased focus on regulation, sustainability and operational performance: Forthcoming regulatory changes and environmental considerations are likely to influence valuation assumptions more directly, especially in the office, industrial and leisure markets.
• Decision and market reaction to the ban on upward-only rent reviews: Should the proposed ban on upwards-only rent reviews be enacted, we expect to see changes in the market reaction, leading to a trend towards shorter lease terms and the introduction of new rent review mechanisms. Such adjustments would foster flexibility that may benefit both landlords and tenants in navigating economic fluctuations.
• Labour's tax policies and their impact on the market: Labour’s tax policies could significantly stagnate the overall commercial real estate market in the UK, impacting operational costs for businesses. Increased business rates and taxation could lead to higher expenses for landlords while narrowing disposable income for consumers. Consequently, this environment could hinder business growth and, as such, affect rental pricing stability.
• Need for expert strategies for landlords: As the leasing landscape evolves, landlords will increasingly require expert guidance on negotiating renewed lease terms and conducting rent reviews. Developing robust strategies that adapt to the new market conditions will be essential for maximising rental income and maintaining favourable tenant relationships.

2025 Insights:

• We saw a continued flight to quality, as occupiers demanded higher specifications and improved amenities.
• Demand for fully fitted and managed spaces remained strong, with occupiers increasingly seeking flexibility through reduced lease commitments bridging the gap between traditional and serviced agreements.
• Alternative uses such as education, leisure and medical captured a greater share of demand, especially in peripheral locations where office demand reduced.
• Owner-occupier demand remained robust throughout the year, driving increased acquisition of vacant buildings for operational use. 

These trends became particularly clear when looking at our activity over the past year:

2025 Insights: Hotels

• Office-to-hotel conversions continued to gather pace as investors and operators sought to unlock value from underutilised office stock in well-connected urban locations. This trend has been driven by stronger hotel rental values relative to local office markets, alongside the appeal of long-term income secured through institutional-grade leases.

Reflecting this shift, Strettons acted on behalf of Travelodge to deliver multiple office-to-hotel projects across North and East London. In the City of London, the Commercial Agency team secured a prominent site at 6 Broad Street Place and 15–17 Eldon Street, opposite Liverpool Street Station, where 58,893 sq ft of former office space is being repurposed into a new Travelodge hotel, subject to planning, with ground and lower ground floor retail and leisure uses reinstated to enhance street-level activity.

Further east, planning permission was granted to transform Gredley House, 1–11 Broadway, Stratford E15, from a vacant office building into a 151-room Travelodge hotel, including a new bar, café restaurant. Acting on behalf of Travelodge, Strettons identified the opportunity and agreed a new 25-year lease with no breaks with the building’s owner, Unex Group, a long-term investor in the area. Works commenced in May 2024, with the hotel opening in early 2026.

These transactions highlight how well-located office assets are being successfully repositioned to meet growing demand for budget hospitality, while providing landlords with secure, long-term income and reinvigorating town centre locations.

Looking to 2026: Hotels

Office-to-hotel conversions are expected to increase through 2026, with owners and developers attracted by the sustainable repositioning of underutilised office stock.

2025 Insights: Retail & Leisure

• Retailers, Food & Beverage and Leisure operators tackled with reduced business rates relief from the government, increased Employer NI contributions and, although falling a little towards the end of the year, higher interest rates. We saw online sales continue to affect the physical retail operators with consumers enjoying the convenience, speed and flexibility that online platforms allow.

Despite wider headwinds in 2025, certain London locations continued to demonstrate the resilience of well-positioned physical retail and leisure environments.

Islington was a strong example of this trend. While online sales continued to reshape consumer behaviour nationally, Islington continues to benefit from excellent connectivity via Angel, Highbury & Islington and Essex Road stations, a dense and affluent residential catchment, and a thriving office and student population.

Centred around Upper Street, the area remains a highly active retail and leisure destination, supported by cultural attractions, hospitality operators and experiential occupiers that drive consistent footfall. Recent lettings completed by our Commercial Agency team including Oh My Cream, Ten Pilates, Kuhaku Japanese Bar & Restaurant, Reset Wellness and Breakin Escape Rooms, highlight continued demand from experience-led and lifestyle brands that are less vulnerable to online displacement.

In short, while online retail continued to challenge traditional operators, locations that offered strong demographics, connectivity and experiential appeal were still able to outperform broader market trends.

Looking to 2026: Retail & Leisure

We anticipate continued market stability into 2026, with leasing activity progressing at sustainable and realistic rental levels, however, strong recent demand for newly available retail units suggests improving occupier confidence, making this a sector to watch closely.

2025 Insights

• The property and asset management sector in 2025 was increasingly shaped by regulatory change, placing greater emphasis on transparency, compliance and long-term asset resilience.
• The introduction of the 2025 RICS Service Charge Code reinforced best practice standards across commercial and mixed-use assets, with stronger requirements around documentation, reporting timelines and cost transparency. As scrutiny from occupiers continued to increase, professional service charge management became a key component of tenant retention and asset performance.
• At the same time, proposed reforms including a potential ban on upward-only rent reviews signaled a continued shift towards more flexible leasing structures. Asset managers therefore placed greater focus on income sustainability, lease design and inflation protection, particularly as average lease lengths continued to shorten.
• Operational risk management also moved higher up the agenda following the introduction of the Terrorism (Protection of Premises) Act 2025 (Martyn’s Law). The requirement for mandatory security measures increased management responsibilities and operational costs, particularly across publicly accessible and mixed-use assets.

Reflecting continued confidence in professional management, the team secured several new instructions during 2025, including the management of a c.75,000 sq ft investment covering rent and service charge administration.

Additional appointments include Buckenham House (c.45,000 sq ft), part-let to SpaMedica with active asset management initiatives underway across the remaining vacant floors, and Faviell House (c.30,000 sq ft), where negotiations are progressing with an occupier for full building occupation.

Looking to 2026

Sustainability and residential regulation are expected to be the defining themes for asset management in 2026 and beyond.

The Government’s proposed EPC trajectory is accelerating the need for proactive asset planning. Landlords are increasingly required to adopt forward-looking capital expenditure strategies, incorporating energy improvement works into long-term business plans to protect asset value and lettability.

Meanwhile, implementation of the Renters’ Rights Act 2025, due to take effect from May 2026, will significantly reshape residential asset management. Changes to possession rights, tenancy structures and rent-setting mechanisms are expected to increase management intensity while placing greater emphasis on compliance, tenant engagement and operational standards. Over time, measures such as the Decent Homes Standard will further reinforce quality expectations across residential portfolios.