People with commercial mortgages may avoid double-dip

03 November 2010

Those with commercial mortgages may be entering a market that is unlikely to dip back into recession.

This is according to chief economist of the Royal Institution of Chartered Surveyors (Rics) Simon Rubinsohn, who said the picture was mixed for the sector across England and Wales.

However, he believes "the likelihood is that the commercial property market will avoid a meaningful relapse into recession".

For the industry to become stronger, the private sector needs to "fill [the void] left by a smaller state", he explained.

Furthermore, interest rates would be required to stay low, which may depend on inflation figures.

In the Rics Commercial Market Survey for the period between July and September, it was found occupier demand slipped for the second quarter in a row and the number of people looking for office space also declined, compared with the three months leading to the end of June.

This comes after Hamish McRae wrote for the Independent that lending conditions appear to be stable, which could be positive news for those seeking commercial mortgages.

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