Business owners around the capital are being urged to take advantage of the current suppressed property market in the commercial sector, by taking a look at the opportunities of purchasing their own freehold office space.
As well as the slump in the commercial property market, other factors currently in favour of the buyer are the government pressure on banks to increase lending and favourable pension structures.
Interest rates are at an all time low, but maybe not for too much longer. There is now serious pressure on the Bank of England to increase the current rate. Many financial experts are predicting that the rate will be raised to 2.5% by the end of 2010, so if buying an office is something that you have been considering, now is the time to act.
Nick Terry of Deveno Property is among those that expects a change in the interest rate, saying; “Our forecasts are that interest rates will make their first upward move before 2010 is out.”
Indeed, Kevin Daly from Goldman Sachs states “With unemployment stable for the past year, growth strong and tax revenues healthy we can build an argument that the MPC should be raising rates already”. He goes on to say that once a rise happens, “Rates could then rise rapidly to 2.5% by the end of next year”.
Ray Barrell of the National Institute of Economic & Social Research goes on to add, “If higher inflation from sterling’s fall persists, the Bank [of England] is going to have to raise [interest] rates”.
If you are in the market for commercial property, Deveno Property offers a Weekly Freehold List where it details every London office building that is available to purchase in one place.
0 comments so far
There are no comments for this post yet. Why not be the first by filling out the form below.