Capital value fall slows again - commercial mortgages

15 April 2008

In news which may encourage those with commercial mortgages, new figures have shown a further decrease in the fall of capital values.

The Investment Property Databank (IPD) figures for March showed that commercial capital values were down 1.3 per cent, less than the 1.5 per cent dip in February or the two per cent fall in January.

IPD research director Malcolm Frodsham said: "Capital values are still falling, but the rate has moderated month-on-month this year and rents continue to grow in all of the three main sectors."

Such news suggests that it may be only a matter of time before values reach the floor and then start increasing again.

Analyst firm Merrill Lynch has predicted that there will be positive returns again by 2010, the Financial Times reports.

The trend in the sector will be an international and not just UK phenomenon, according to Grosvenor, the investment vehicle of the Duke of Westminster, reports the Independent.