Commercial property debt 'worth £160bn'

11 March 2010

Written by Jeni Browne

Commercial mortgage holders whose businesses are in debt may be behind a warning from the Financial Services Authority (FSA) that there could be a "meltdown".

The annual overview of financial risks in the UK was published by the body yesterday (March 10th).

It found that approximately £160 billion of UK commercial property debt was due to mature over the next give years.

This could be down to the number of firms that relied on leniency from banks during the recession.

But some banks may now decide not to renew loans they have offered to commercial properties, the report noted.

Referring to the economic outlook for the country, the FSA reported that there are signs of recovery.

Domestic and global GDP levels have stabilised, although there are still uncertainties in the economy, the report continued.

Much of this will depend on what happens in the government and how the global economy performs, it was added.

It is thought that a general election will be help in the next few months, but some have feared that the possibility of a hung parliament could affect the financial stability in the UK.

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