Banks' commercial property negative equity could grow to £50 billion, it has been claimed.
Negative equity across
development investment properties has reached billions of pounds, but could be significantly higher, it has been claimed.
Speaking to the BBC, William Newsom of Savills explained that commercial banks could face a negative equity debt across their commercial
property investment portfolios of up to £50 billion if land values drop.
He explained: "It has never been seen before to this order of magnitude. It is 25 per cent of the entire lending book in round terms.
"There [are] a lot of banks out there who are burying their heads in the sand and not admitting the extent of the problems that they have."
A recent report by DTZ Research indicated that UK commercial property had its worst performance return ever in December 2008.
This has since been followed by an all-time high monthly return in December 2009.
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