Crunch time for the UK property sector
Despite signs of recovery in the UK property sector, both commercial and domestic, there are concerns that over the next five years we could see something of a liquidity crunch in the UK commercial property market. It is believed that banks were forced to waive certain conditions attached to property company loans in the aftermath of the credit crunch, although there is potentially around £160 billion worth of commercial property debt to be refinanced over the next five years.
There are growing concerns that a number of banks may well decide not to renew these property loans despite the fact that the UK property sector has shown signs of recovery of late. If this was the case then we would see a significant amount of commercial property up for sale in the UK which could cause a drag on the ongoing recovery. Indeed recently we saw signs of concern regarding the UK market with UK giant Hammerson suggesting it would look to the French market in the short to medium term because of a "choppy" UK market.
The damage caused by the credit crunch and resulting recession will only really emerge over the next decade and there are certain to be many shocks in store in the future.
Share this..
Related stories
Students splash more cash on rent
Average rent rates for students in the UK have risen by seven per cent compared to last year, according to a new report by Accommodation for Students.Social housing website 24dash published the report findings showing that an average UK student would pay £60 per week for their digs in 2007, which is four pounds more than 2005. Yet this figure does not reflect the experience of all students, as re...
Read MoreUK authorities issue confusing house price data
The UK government has today indicated that the average property price in the UK fell by just over 10% during 2008. This is a sharp increase on the 8.5% fall in the year to November 2008 and compares less favourably against more recent house price indications from the property sector. However, the figure does show that the UK property sector is in sharp decline and even a suggested small increase i...
Read MoreThe Council Of Mortgage Lenders Predicting Doom And Gloom
In a move which has probably crystallised the fears of many in the UK, the Council Of Mortgage Lenders (CML) has issued a downbeat report on the outlook for the UK housing market. While government forecasts estimate a fall in property prices in the region of 5% to 10% this year, the CML believe it will be around the 7% level, with 35% few transactions compared to 2007.
While this i...
Will an increase in social housing hold back the UK property market?
Leaks from the UK Treasury are suggesting that the UK government is set to put aside significant funding for social housing across the country. However, while there is no doubt that demand for social housing has never been higher, with more and more homes being repossessed and families thrown onto the street, there are concerns this could impact on the short to medium term potential of a property...
Read MoreHips face renewed criticism
The introduction of home information packs (Hips) has come under attack by a coalition of property industry organisations.Writing to the housing minister regarding the new packs, the National Association of Estate Agents (NAEA), the Royal Institution of Chartered Surveyors (Rics), the Council of Mortgage Lenders (CML) and the Law Society requested a meeting to discuss their concerns. However the p...
Read More