Property – what does the future hold?

T18 Tues 1245

Over the last five years the UK commercial property market has been subject to a substantial re-rating where investors have been prepared to pay higher prices for the same level of rental income, a feature commonly know as ‘yield compression’.  This has been driven by demand from buyers outstripping sellers.  In 2007 the market ground to a halt with investors concerned that prices had risen to far.  This was exacerbated by rising interest rates and the fear of contagion from the credit crunch and sub prime lending.  The question on investors’ minds is what will happen next.  Andrew Allen Head of Strategy at Cordea Savills and Fund Director for the Charities Property Fund will endeavour to provide clarity on the issue.