Commercial property market in good health

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Looking at the figures for March 2017, the value of commercial property rose in March by 0.5%. The biggest rise of 2.7% was for property in industrial estates.

Jane Simpson, writing for Mortgage Strategy this month, examined at the latest figures for the commercial market revealing these positive statistics.

Rents also rose, but have risen more in the South of England than other areas. Some regions of Scotland have experienced little or no rises in office rents. This highlights the need to choose the right area when purchasing commercial property,

Allsops the property auctioneers have reported a 78% rise on sales of commercial buildings in their March 2017 auctions. Sub £1 million buildings rose to 38% of the total commercial properties sold at Allsop’s auctions.

The retail sector has had its difficulties, but some areas are doing well. A Lincolnshire shopping centre recently sold for £2.7 million which was a £500,000 rise on its previous sale price 18 months ago.

With the commercial property market still doing well, there is a steady demand for commercial mortgages to finance property deals.

Financial experts are cautiously optimistic about the future of the UK economy. In the past year many property experts predicted a decline in commercial property values, but few do so now.

The full impact of Brexit on the commercial property market is uncertain. Though Britain could leave the EU in two years’ time, Simpson believes negotiations may drag on so it will take more than two years to leave.

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