Commercial property demand ''set to pick up'' - commercial mortgages

26 June 2007

Demand for commercial property in the UK is likely to pick up over the coming months after a lengthy period of stable growth, it has been advised.

The Confederation of British Industry (CBI) and GVA Grimley have said that 22 per cent of landlords increased their property holdings over the past six months, compared with 20 per cent who decreased them.

An increase in tenant demand has resulted in the sector becoming more optimistic when it comes to the next six months, the analysis revealed, with an improvement in the quality of portfolios among the most important goals for landlords with commercial mortgages and other investors.

"The outlook for the next six months is encouraging, with demand for commercial property set to pick up," commented CBI economist Lai Wah Co.

Last month the Financial Times reported that commercial lending rose by 20 per cent in 2006.