Insurance News Archive

Commercial property market breaks record, 'set to continue'

A record of £175 billion has been lent to commercial property companies, according to figures from the Bank of England - and experts in Manchester expect the growth in the market to continue.

In the second quarter of 2007 outstanding debt to commercial property businesses increased by nearly five per cent.

As well as record figures, the growth in loans this year took commercial property debt to one eighth of UK debt - representing a record high.

However, experts have said that the credit crunch hitting homeowners is not likely to affect Manchester's property market.

Shaun Smyth, director of property finance at RBS Commercial Banking, told the Manchester Evening News: "Greater Manchester's property market remains vibrant and the fundamentals are in place for a period of continued growth.

"I would expect investors to strengthen their portfolios within what remains a relatively stable market environment across the north west."

Phil Basten, head of the finance division at the Co-operative Bank confirmed the message, saying: "It's business as usual for us at the bank in terms of lending to the sector."

24 Oct 2007