The commercial property boom in the UK may be finally ending, as new data suggests that prices started to fall in the latter part of 2006.
The commercial property boom in the UK may be finally ending, as new data suggests that prices started to fall in the latter part of 2006.
The Financial Times newspaper based the claim on analysis by property advisor Lambert Smith of all the property deals, worth sterling 27.5 bn, done in the second half of last year.
In previous years, the weight of billions of cheap capital pouring into offices, retail and industrial property drove down yields. But researchers at Lambert Smith suggested yields - the difference between rent income and the purchase price - have started to rise again, just as the cost of borrowing has increased.
The report contradicts figures from the Investment Property Databank that suggested yields were still falling for most of last year.