Insurance News Archive

Property owners cautioned about the commercial market

Property owners specifically within the sphere of commercial property have been reminded of the need for adequate property insurance after predictions that the market may be due for a fall.

They should be considering making preparations should the market take a turn for the worse after a suggestion from Kelvin Davidson, property economist at Capital Economics that levels in the sector could be due for a drop.

While the drop may not be too much of a dramatic one, Mr Davidson does suggest that the market will see hard times in the coming year, both within London and further afield.

Mr Davidson said: "In our view the economy is going to shrink next year which will flow through to lower property rents. It also looks like investor confidence has taken a bit of a knock which will tend to put upward pressure on property yields."

The Investment Property Databank revealed recently that, for the first time in 28 months, UK commercial property has recorded a negative capital decline.

Posted by Michael Brown

16 Dec 2011