Central London’s high pricing has pushed the UK property market 10% above long-term trend, according to an ‘adjusted market value’ (AMV) metric highlighted in research published recently.‘
Long-term Value Methodologies and Real Estate Lending, a paper from the Property Industry Alliance, concludes that if lenders and regulators had had suitable long-term value metrics in the run up to the 2007 crash, they could have anticipated the extent to which commercial property was becoming overvalued and seen that a major crash was looming.
The paper looks at three long-term value methodologies and says AMV was the best predictor of impending downturns.
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The full story appears in the latest weekly edition of EuroProperty, part of the PropertyEU Group.
