CFI: News review
Turbulent times continue by
Guy Garrard, head of business
development, Tiuta
the property market is a tur- bulent beast. it’s also one that can be difficult to gauge when we have so much data and a plethora of monthly surveys and indices thrown at us. in the news this month Britain’s commercial prop- erty recovery is said to have lost pace again in June, with price growth slowing for a third consecutive month. the latest monthly index from cB richard ellis shows that capi- tal growth slowed to 0.6% in
June after a 0.7% rise in may, taking the year-to-date rise in property values to 6.8%. the all Property total re-
turn for June slowed to 1.1% from 1.2% the previous month, bringing the average annual return for uK commercial property to 26.7%. the index went on to outline how the property investment market is clearly slowing with investors and yields flattening. in another report published recently by BnP Paribas real estate it was suggested that the commercial property mar- ket will not regain the value lost during the recent market crash for more than 15 years which means that it will be 2025 at the earliest before
Lowry Capital
values reach similar pricing to 2006 and 2007, when the mar- ket peaked. also in the report BnP says
capital values in the short term will remain stagnant. it also adds that prices are expected to be flat overall and take-up low until 2012, with the excep- tion of prime buildings in cen- tral London, where a lack of supply and renewed corporate demand will boost values. the outlook may jar with investors who have piled money back into uK commercial property in the past year, leading to an 11% price jump since values bottomed out last summer. can we get any more down-
beat? Well on the plus side the latest cBi/KPmg survey re-
veals that, while most firms in London still feel some impact from the recession, spending plans have improved com- pared with six months ago. ac- cording to the results, 53% are optimistic about their future business prospects - up from 7% six months ago. it was also revealed that 58% of firms plan to expand their business in the next 12 months, with 32% of those planning to expand within the capital. Let’s hope there are
more innovative providers out there to generate more com- petition within the market so that brokers and their clients have access to a wid- er range of deals based on sensible criteria
TM Bridging Finance
mortgage introducer AUGUST 2010 37
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