Strong commercial demand in Manchester ? commercial mortgages

01 October 2007

More small firms in Manchester are looking to take out commercial mortgages, it has been advised, due to low borrowing costs and the attractions of combining property with a self-invested personal pension (Sipp).

Lambert Smith Hampton has said that smaller firms are especially interested in freeholds because of the current beneficial economic conditions.

Speaking to the Manchester Evening News newspaper, property developer Metier advised that avoiding capital gains taxes by placing property in a Sipp was also attractive to companies.

"Ten years ago most businesses could only dream of buying their own premises, but [this has changed]," commented Metier director Andrew Hine.

"And the current UK economic climate is ripe for those considering a commercial mortgage. The rental market is rising, interest rates are relatively stable, and in most sectors, businesses are doing well," Mr Hine added.

The report comes soon after research from Knight Frank showed that interest from larger firms was helping drive commercial property demand in Manchester.