Property investment sector ''sees recovery'' - commercial mortgages

28 January 2008

In news that may interest those with commercial mortgages, it has been reported that commercial property stocks have started bouncing back after recent losses.

The sector has yielded returns of five per cent so far despite recent stock market turbulence and property market liquidity issues, the Financial Times reports.

British Land, Hammerston and Brixton are among the companies which have seen significant rises in value, the paper notes, describing this trend as "clear sign of a rapid change in market sentiment from fearful to broadly optimistic".

The main factor regarded as turning the market around is the perception that the bottom has almost been reached, with £10 billion in funds waiting to be spent by investors in anticipation of values starting to rise again soon.

Another sign of optimism for the future has emerged in the north-east, where 21-year-old entrepreneur Amy Fettis from Alnwick in Northumberland has started a property investment company aimed at young people.

Ms Fettis expects to become a millionaire within five years through the venture, reports The Journal.