"Favourable conditions" for commercial mortgage holders attracts foreign investment

17 June 2010

Written by Simon Whittaker

Mortgage holders may currently be seeing "favourable conditions" in the commercial property sector, which are attracting investment from overseas.

This is the opinion of Andrew Teacher, media manager at the British Property Federation, who suggested that foreign speculators were seeking to take advantage of low interest rates in the UK.

His comments follow a recent claim made by Jones Lang LaSalle that Qatar was on course to become the largest investor in overseas property in the world and wealthy people from the emirates were likely to make more purchases in the UK in the near future.

Mr Teacher warned that interest rates would not stay at their current low level forever, as the Bank of England will probably raise them when inflation begins to pick up.

However, prime property in the capital will remain popular even after the market recovers, he added.

"Ultimately, trophy London assets are trophy London assets whether you are in a downturn or not and people will always want to own them."

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