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Commercial Property News
UK commercial property market 'could face tough 2010'
The second half of 2010 could bring challenges to the commercial property sector in the UK, one expert has warned.
Currently, the market is enjoying a recovery following the lows of the past months but Chris Bamberry of the Scottish Widows SWPI UK Real Estate told the Guardian that it may face further problems later in the year.
"We'll see quantitative easing wind down, a new government and potential interest rate rises," he explained, adding that equities traditionally fall in anticipation of an increase in the base rate.
Factors on the high street may also affect the state of the business property market, Mr Bamberry noted, as retailers will find trading tough due to the increase in VAT and continued pressure on the incomes of consumers.
His comments come after the Ernst & Young ITEM Club warned that the current upturn in the real estate sector is unsustainable, also citing the removal of quantitative easing as a reason why growth in the market may stall.
Currently, the market is enjoying a recovery following the lows of the past months but Chris Bamberry of the Scottish Widows SWPI UK Real Estate told the Guardian that it may face further problems later in the year.
"We'll see quantitative easing wind down, a new government and potential interest rate rises," he explained, adding that equities traditionally fall in anticipation of an increase in the base rate.
Factors on the high street may also affect the state of the business property market, Mr Bamberry noted, as retailers will find trading tough due to the increase in VAT and continued pressure on the incomes of consumers.
His comments come after the Ernst & Young ITEM Club warned that the current upturn in the real estate sector is unsustainable, also citing the removal of quantitative easing as a reason why growth in the market may stall.
Wed, 3rd Feb 2010