Survey shows optimism - commercial mortgages

15 January 2008

A new survey has suggested that pessimistic views about the prospects for the commercial property market in Britain may be unfounded.

The Confederation of British Industry (CBI) / GVA Grimley Corporate Real Estate Survey has shown that 43 per cent of the firms polled between October 24th and November 14th said they planned to expand their commercial property portfolios, the CBI announced.

In contrast, 22 per cent said they anticipated shrinking their portfolios, with the balance of 21 per cent just behind the 22 per cent positive balance reported for the previous six months, news which may encourage those with commercial mortgages.

Commenting on the findings, GVA Grimley director Howard Cooke said: "This survey does not support the speculation about a crisis in commercial property.

"Firms are still expecting to expand their property occupation much as they have in recent months."

However, the CBI noted that 82 per cent believed that changes to the empty relief rate in April would have a negative impact on the industry.

The news may suggest the sector is poised to bounce back after a difficult few months.

Earlier, Citywire reported that data from Resolution''s UK Commercial Property Trust may have indicated a fall in commercial property prices of as much as 7.81 per cent.