Commercial mortgages may buy more in London

18 October 2010

Written by David Whittaker

Commercial mortgages may go further when buying property in central London, as there have been falls in the price of real estate in the area.

Ed Mead, director at Douglas & Gordon, explained European investors worried about the health of their economies were pulling out of assets.

However, this situation may change, the expert went on, adding the strength of the pound could drop against the euro after the comprehensive spending review, attracting buyers from the continent back to central London.

"There was a stage earlier this year when you saw the pound-euro rate going slightly the wrong way if you were a European," he stated, saying this led to speculators from the eurozone drawing out of real estate in the capital city.

Chancellor George Osborne will announce the government's four-year spending plans on Wednesday October 20th.

On this date, fixed budgets will be allocated to different departments by the Treasury.

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