''No major correction'' for commercial property - commercial mortgages

26 September 2007

The head of British Land has said that he does not expect to see any major correction in the UK commercial property market, it has been revealed.

The firm''s chief executive, Stephen Hester, has revealed that while fewer developments are scheduled, he believes that the industry will largely be able to shrug off the effects of the ongoing credit crunch.

Earlier this week it was reported that a fall in construction rates could help sustain the London office market, and Mr Hester has said that no "massive fallout" is on the cards for that sector, according to Reuters.

"My view is that this will be a 1998 and if you look at the employment growth in 1999 and 2000, it''s as if nothing had happened," Mr Hester said, speaking at an industry conference.

Housebuilder Barratt Developments, meanwhile has reported a 9.3 per cent rise in pretax profits for the year, with profit standing at £427.8 million for the 12 months to June.