Two thirds of property surveyors think Britain's commercial real estate market is in a downturn, as higher Bank of England interest rates have brought the toughest credit conditions since at least 2014, a survey showed on Thursday.
The Royal Institution of Chartered Surveyors said 68% of members judged the overall market was in a downturn, even though some sectors such as industrial property, student housing and prime office space were robust.
The BoE raised interest rates to 5% last month to tackle the highest inflation in any major advanced economy, and economistsby Reuters this week expect a further quarter point increase next week and a peak of 5.75% this year. "This has, almost inevitably, impacted sentiment within the commercial property market, as higher borrowing costs weigh on investor demand and place renewed pressure on capital values," RICS economist Tarrant Parsons said.BoE rates are the highest since 2008, and policymakers are weighing up how much further they will need to rise to return inflation to its 2% target from 7.9% in June.
The impact on many households has been limited or delayed, as fewer people have mortgages than during the last rate tightening cycle before the 2008 financial crisis, and a smaller share of mortgages have floating interest rates.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Deutsche Bank flags cost cuts as investment bank slump lowers profit By Reuters⚠️BREAKING: *DEUTSCHE BANK SHARES SLIP IN FRANKFURT AS INVESTMENT BANK SLUMP LOWERS PROFIT $DB $DBK 🇩🇪🇩🇪
Lire la suite »
NatWest Bank CEO ousted after furor over politician Nigel Farage's bank accountNatWest, one of Britain's biggest banks, says its chief executive has left her job after discussing personal details of a client — the populist politician Nigel Farage — with a journalist.
Lire la suite »
NatWest Bank CEO ousted after furor over politician Nigel Farage’s bank accountThe chief executive of NatWest, one of Britain's biggest banks, left her job on Wednesday after discussing personal details of a client -- the populist politician Nigel Farage -- with a journalist.
Lire la suite »
Samsung Galaxy Z Fold 5: two things I hate (and two I love) | Digital TrendsThe Samsung Galaxy Z Fold 5 has landed, but was it worth the wait? Here are two things I hate about the new foldable — plus a couple of things I love.
Lire la suite »