Business mortgage applications in Edinburgh to rise?

02 June 2010

Written by Simon Whittaker

The number of people applying for business mortgages in Edinburgh could be set to rise as the capital looks to explore new ways of funding commercial property ventures.

According to the Financial Times, the local council is hoping to develop its waterfront area through tax increment financing methods.

This kind of scheme allows authorities to borrow money against potential future gains in business rates, with the cash being used to make improvements to facilitate those increases.

The news provider noted that officials are now looking to use this for the development of office buildings and other structures at Leith Docks.

Leader of the council Jenny Dawe told the Scottish government in a report: "Without such investment there is a real risk that the development of Edinburgh's waterfront could be delayed for a considerable period."

Recent figures from the Investment Property Databank stated that commercial property capital growth increased by 0.8 per cent throughout the UK in April.

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