Commercial property investments set to rise | 2 December 2013
The commercial property industry has been given yet another boost, following reports that lending to investors will rise by 25 per cent by the end of 2014, introducertoday.co.uk reports.
According to new research by Mortgages for Businesses, total lending to investors will hit £25 billion by the end of next year – making for a rise of around one quarter.
This added investment is set to be welcomed by those in the property market, as around three in every five landlords has also said they plan to expand their portfolios over the next six months. Conversely, only seven per cent of those questioned said they expected property portfolios to shrink over the same period.
These results come on top of an already buoyant commercial property market, compared to the nadir recorded back in 2008. Then, lending was at just £8.5 billion, whereas this year it has soared to £20 billion – a 135 per cent increase.
Despite all this positivity, property investors still think lenders should reduce their criteria in order to give the market even more of a lift. Some 60 per cent of those quizzed by Mortgages for Businesses claimed that lenders needed to ease their criteria somewhat in a bid to help support active investors.
Commenting on the results, David Whittaker of Mortgages for Business told theindependent.co.uk: “The appetite for expansion is large among property investors. Yields are strong, property prices are rising and demand from tenants shows little sign of slowing.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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