Boom time for commercial property buyers?

Figures released by the Bank of England reveal that an unprecedented £175bn has been lent to UK commercial property companies. This has resulted in a buying boom throughout the country. Read more…
Martyn Roberts from Accredit doesn’t necessarily think that the credit crunch of the kind now facing homeowners, will happen in the commercial property market in Manchester. Much of the lending can be justified by rising property values and improved earnings from commercial property, thanks to rising rents. Despite calls for banks to be more cautious, most Manchester lenders still feel fairly upbeat thanks to lending policies which have remained quite strict" he adds.

Impacts following rate rises

Over the past 12 months, interest rates have increased which will impact on the ability of banks to fund investment deals. These changes are reflected in the returns on commercial property returns, down to around 9.9%, according to the IPD.
Despite this, certain areas of the country are still confident about the future.

Confident Manchester markets

"Manchester’s property market remains vibrant and there are no signs of anything other than continued growth, according to our major lenders" states Martyn "We still have a relatively stable market environment across the North West and this is reflected by the attitudes of bankers throughout the region" he adds.
There are many examples of large banks providing funding packages to major property investors enabling them to acquire more development sites and further improve upon their existing portfolios.

Cause for concern?

Due to the strength of relationships with commercial property lenders, Accredit are well placed to provide advice on the current state of the market and advise on the options available to each individual company.

"Our customers will benefit from our close and continued relationships with our lenders" states Martyn "It is at times like these, that our expertise really makes a difference" he adds.
Should you have any concerns about the current state of the commercial property market or your ability to fund property developments, please contact Martyn Roberts for further assistance.