Thursday, Oct 25, 2007
The Bank of England today warned the commercial property sector could be set for more trouble due to turmoil in the financial markets.
Property Week: Bank of England warning for commercial property sector
In the Bank’s bi-annual Financial Stability Report, commercial property is identified as vulnerable because of the previous boom in the sector.
It points out that lenders have already tried to tighten terms whose 9% share of major UK bank lending is now above the previous peak before the early 1990s market crash.The report said the the price of commercial property derivative contracts suggests further falls.
‘Contacts are surprised at the speed of the slowdown,’ says the report. ‘Which they expected to be more pronounced for secondary than prime commercial property.’
The impact could be more severe than in the past because of a lack of confidence and continued tightness in wholesale funding markets following Northern Rock’s collapse.
Posted by thf andrew @ 12:51 PM (209 views) Add Comment
1 Comment
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1. dohousescrashinthewoods said...
I wondered if there was a veile hint at property more generally.