Cuts in public expenditure will leave many commercial properties vacant, it is claimed.
A major surplus of
commercial development assets will be created by public sector spending cuts, it has been claimed.
The downsizing and closing of government departments will mean many office sites will be vacated, the chief executive of Hargreaves Lansdown Peter Hargreaves told City AM.
This could leave
property investment firms short of rental income, while the effect of cuts on private firms supplying the public sector must also be considered.
A continued lack of
commercial mortgage finance is also a major problem for the sector. Mr Hargreaves told the publication: "I can't see much of a future for property with the lack of mortgage money."
His comments come in light of figures from the Bank of England, which showed that property lending has slumped to a four-month low.
Meanwhile, real estate advisor Cushman & Wakefield claimed last week that all the available value in UK commercial property has been captured.
Posted by Allan Flowers.
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