Commercial property values

Commercial property values predicted to slide in 2019




Some 75% of lenders think that commercial property prices will decline this year, according to the latest research.

The market trend analysis study from Link Asset Services revealed that those expecting falls predicted commercial values would drop by more than 2.5%.

Around three-fifths of lenders (61%) anticipated that residential property values would decrease by more than 2.5% in 2019. 

Almost three-quarters of lenders (74%) cited UK political risk as the biggest threat to the commercial real estate market. 

James Wright, head of real estate finance at Link Asset Services, said: “Confidence has turned to caution at the start of 2019. 

“Brexit has already weighed heavily on UK real estate market, and political risk is by far lenders’ largest concern.

“We are seeing many taking a far more cautious approach as a result, with fewer expecting to do more business, and many falling back into their core markets and products.

“It looks like, in the next 12 months, we’ll see lenders take a ‘softly, softly’ approach until there is greater clarity around the UK’s relationship with the EU, and economic and political fears calm.”

The Link Asset Services research is based on the collection of primary data over the first two months of 2019 and a data set of 100 respondents from 81 separate lenders in the UK real estate lending market.

Sign up to our newsletter to receive more news like this story

I accept that by joining the B&C mailing list, I will receive relevant news and promotional material via B&C on behalf of its partners and advertisers. Your data will not be passed on to any third party.
No, thanks, just the news please.

Leave a comment