Property situation ''not like early 1990s'' - commercial mortgages

08 January 2008

The commercial property situation in Britain is not comparable with the early 1990''s, it has been reported.

In an analysis which may interest those considering taking out commercial mortgages, the Times reported that a number of buyers will be making cash purchases of commercial property in the knowledge that there will be some bargains available.

Nick Leslau of private property firm Prestbury told the paper: "Cash will be king in 2008 and we believe there will be plenty of opportunities this year."

The paper noted that in comparison with 1992 interest rates are a third as high, while vacancy rates in City of London office space are just 5.8 per cent now compared with 18 per cent then.

It noted that Prestbury will have a £500 million fund to invest while others also have large funds available.

Such spending may help reignite the overall commercial property market.

Another example of continued property investment on a substantial scale has emerged in Manchester, where Altrincham-based Property Route has just invested £3.5 million in commercial premises in central Manchester, the Manchester Evening News reports.