What is the impact of the Credit Crunch?
The credit crunch has effected the Commercial property market over the past 2 years. We have seen a decline in the prices by close to 35%. This decline combined with the weakened pound has seen a large influx of foreign money coming to the UK market. At current prices yields for prime property are around 8-10%. This is abnormally high in comparison to the Bank Base Rate. It will invariably drive the investment in property. As the market normalises and the banks are lending as normal we will see yields return to their natural levels, ultimately driving prices up.
