Commercial property ''to beat equities'' - commercial mortgages

21 September 2007

Returns on commercial property are set to beat those for equities this year, the Value and Income investment trust has said.

Citing the strength of the London office market as one reason for such performance in the commercial property sector, Angela Lascelles and Matthew Oakeshott from the firm said that rental values on the trust''s properties could rise by between three and four per cent, according to ifaonline.co.uk.

The website has also reported that the duo looked to total returns of 18 per cent last year as evidence of how those with commercial mortgages have seen their properties outperform equities in the UK for three years in a row.

Meanwhile, Property Route has said that it is expanding its operations to cover the whole of the UK.

"We''ve traditionally focused our attentions on the north-west market, but as the company grows we are now confident in looking further afield and will continue to consider purchases in all parts of the UK," said David Pelham, commercial property director at the firm, according to the Manchester Evening News.