UK commercial property defended - commercial mortgages

27 March 2008

UK commercial property is still a good investment despite the recent downturn in the market, it has been claimed.

Rob Martin, head of research at Legal & General, said the case for property investment "remains a strong one", reports the FT Advisor.

In further comments which may interest those seeking commercial mortgages, he suggested that while the first half of 2008 may be a difficult time following a correction in prices, the situation would not persist throughout the year.

He concluded: "Valuation of property relative to other assets has already improved substantially. With property prices falling further, this will raise the property yield."

Investing in commercial property should be seen as a long-term financial manoeuvre, a solicitor who specialises in property has stated.

John Eatough, a partner at Napthens Solicitors in Blackburn told the Lancashire Telegraph this week such transactions should be for a term of at least five to ten years.