Fresh warning over UK commercial property commercial mortgages

22 May 2007

British Land has voiced new concerns over the future of the UK commercial property market, stating that the sector could be set for a dramatic slowdown in the coming future.

These predictions are being made after headline annual pre-tax profits dipped by a fifth to £1.27 billion, indicative of a wider decline in UK commercial property.

Challenging conditions have been highlighted as responsible for the decline, matching earlier concerns from Land Securities.

Subsequently, it is speculated that conditions could become more constrained for businesses looking to enter commercial mortgages.

Despite its reservations British Land has announced plans to continue ahead with development plans for Leadenhall Building in the City of London, according to the Times, part of an ongoing £4 billion development programme.

British Land chief executive Stephen Hester predicts that occupier demand may lead to improvement in commercial property market conditions in the future.