Britain’s commercial property industry could be turning a corner, with confidence high and lenders starting to invest once more.
This was the overriding theme at the British Property Federation and Movers & Shakers Commercial Property Breakfast, which took place in London this week.
Delegates looked back over the past 12 months to see where the market had reached in recent times and it soon emerged there was a marked increase in both deals and confidence, bpf.org.uk reports. Now, with both buyers and lenders of commercial property anticipating these trends to continue throughout 2014 and beyond, the future is looking positive as well.
There was also a notable change in the corporate banking world highlighted at the event, with a trend for non-traditional loans starting to emerge. The likes of private equity-based finance could unlock new opportunities that may otherwise have not been given the chance to even get started. Speculative developments – which had previously struggled to gain bank finance – could be just one of the areas to benefit from this changing trend.
Commenting after the event finished, chief executive of the British Property Federation, Liz Peace, told economicvoice.com: “London is leading the pack with its recovery, but this is rippling out [to] the regions, who can expect to see increased activity and a more competitive market as the year progresses.
“With lending intentions becoming more favourable, interest rate margins creeping down and LTV ratios becoming larger, we can expect to see a lot more exciting project come to fruition.”
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