Insurance News Archive

Research shows commercial property owners enjoying strong market

Research carried out by De Montfort University has revealed that property owners within the UK commercial property market will have seen a strong opening half of the year.

A study from the university showed that the commercial property market within the UK performed well during the first half of 2011. The levels of debt held against premises in the country managed to drop in the face of global economic gloom.

The report showed that the ultimate value of outstanding debt within the market fell by 3.4 per cent in the first half of 2011 to £201 billion.

Bill Maxted, co-author of the report, said: "Lending organisations commented that the existing liquidity crisis had been made more acute by the problems of European sovereign debt and the unknown extent of contagion between banks."

The report found 25 percent of the debt is currently secured on a loan-to-value ratio of over 100 percent.

Posted by Michael Brown

14 Dec 2011