IFAs ''turning towards commercial property'' - commercial mortgages

06 August 2007

Independent Financial Advisors (IFAs) are pointing clients in the direction of commercial property ahead of either commodities or hedge funds, a new study indicates.

Research from Barclays Wealth has found that 57 per cent of advisors would think about recommending a product related to the commercial property industry, with 16 per cent confirming that they would definitely recommend a commercial property product.

In comparison, just five per cent said they would recommend something linked to hedge funds.

"Property clearly remains an important and popular asset class among intermediaries," said Barclays Wealth director Colin Dickie.

"Products linked to commodities and hedge funds are far less popular, which I suspect reflects many advisers'' reluctance to recommend those asset classes, whether their exposure is protected or not," Mr Dickie added.

The Bank of England''s decision last week to hold interest rates at 5.75 per cent provided a welcome respite for those with commercial mortgages.