Welcome to the first quarterly newsletter of 2026 and what a newsworthy start it has been! Changes are afoot both globally and on a local level.
We attended an interesting seminar at the beginning of the year, in which the chief economist of Handelsbanken, James Sproule, suggested that there would be 2 further quarter point drops in the UK base rate. Interestingly, this would then rise gradually from 3.25% in January 2027 to 4.75% in June 2036.
Of course all of these predictions went out of the window when the war with Iran got underway at the end of February. Oil prices have spiked giving inflationary pressures which will need to be subdued. Consequently, interest rates at best are expected to remain the same, if not rise, the first of which is predicted to be 0.25% in December 2026. The amount of time that the war continues will no doubt determine the inflationary pain felt throughout the rest of the world and influence our eventual interest rate changes.
Our current Prime minister Starmer was found to be indecisive when the war began, consequently damaging foreign relations and causing further division / polarisation here. His involvement in the "Mandelson" scandal and the fact that the UK economy is flatlining, present additional pressures which are likely to produce change at the local elections on 7th May.
As readers of the Wakefield Express will recall, we supported the acquisition of the Ridings Shopping Centre by Wakefield council when it could have been bought for a very competitive figure back in 2022. After an internal vote within the Council, this was not pursued and Mr Zahid Iqbal acquired the property for £5.25m.
In February this year, Wakefield Council announced a renewed desire to acquire the Ridings and subsequently applied to central Government for a £17.9m grant to pay for its acquisition and subsequent demolition. Despite the rumours that Wakefield Council are now paying an eye watering £14m we continue to be supportive of this proposal, for several reasons.
The council continues to be a "special purchaser", being the only entity that can compulsory acquire the surrounding buildings necessary to facilitate such a large scale redevelopment. Furthermore, Wakefield has been "over shopped" since the development of the Trinity shopping centre which has made certain parts of the city centre, such as Kirkgate, largely derelict. The Ridings has had a string of recent owners who have either have failed to grasp the nettle or couldn't afford to bring it back to its original glory. It has arguably reached a point now where it is more economical to start again rather than attempt to refurbish the centre bringing back a largely unwanted use. The creation of the right type of residential units are most welcome, creating immediate demand for the surrounding retailers / other business uses.
Plans have been released for a major regeneration of this area over the next 10 years.
The success of its redevelopment will however depend upon the approach taken and the tenacity to get it right. Experienced developers, Muse (part of Morgan Sindall) have partnered with Wakefield Council to achieve this.
There is a real opportunity to provide all of things that Wakefield has been missing right here. We are supportive of all non-retail uses, including:
- Provision of a new stand alone hotel. This will present a much better location than the old Westgate train station overlooking "monster mansion" and there is arguably demand for two
- Provision of multi storey parking, sufficient to meet the needs of the new residential development and a further provision to support visitors to the remainder of the development
- A variety of residential units, not just shared ownership (like that being created currently on Kirkgate)
- A leisure offering to compete with White Rose / Xscape (e.g. Kingpins – where you have a variety of attractions to pull people / families back to the city centre)
- Supporting restaurants and the usual public realm offerings (think of "Glassworks" development in Barnsley)
- New cinema (with associated car parking) to replace the outgoing
- Supermarket / convenience store, to support the new residential accommodation and replace some of the outgoing food stores
We feel the suggested 10 year timescale for a redevelopment is unnecessary. It could be redeveloped a lot quicker, but it is of paramount importance to achieve value for money from the rate payer and its eventual success, is that the commercial elements of this development are pre-let. Buildings can be designed / offered according to occupier demand with residential accommodation surrounding that. We have had meetings with the relevant councillors to further these ideas and progress our views. Whilst the transitional development period will be concerning, the end result should provide a much better long-term outlook for Wakefield and put it on a better footing.
In other news, we were surprised to learn that Thomas Wales of BID left suddenly a couple of weeks ago. His number two, Daniel Critchley is now in charge, but the long term future of BID looks uncertain with a vote on it continuing set to take place in October.
We have been busy again acquiring 7 tenanted houses in Richmond, Leicester, Smethwick and Apperley Bridge since the beginning of the year. We continue to be acquisitive and we would like to ask any agents or owners of tenanted houses to put forward their opportunities for us to consider.
We have several houses for sale (many which present opportunities to add value) details of which are on the website. House sales remain active, provided they are sensibly priced. There are however notably fewer buy to let investors in the market, caused by the onerous Renters Rights approaching on 1st May.
We have already begun to receive enquiries from commercial tenants looking to relocate away from the Ridings. "Amour piercings and beauty" indeed came out of the Ridings and took 15A Little Westgate from us. No. 1 Cross Square was let to "Kredens Café" in what promises to be a very central location made even more prominent when the Cathedral Square development takes place at the end of this year. They are currently fitting out and hope to open next week. We have also recently let 47 Northgate to "Willow Method" which offers Pilates, Reformer and Barre gym classes to the health conscious. Over in Pontefract, we have let 25 Market Place to the Methodist Church who are opening a new community centre and café there.
Happy Easter everyone!
