Hung parliament 'bad for commercial property'

Office design news from Morgan Lovell

Published on 12-05-2010

A report by CB Richard Ellis (CBRE) has highlighted the danger of a hung parliament to the UK commercial property sector.

The organisation said that during March, growth in average values of commercial property had been at 2.6 per cent, but in April it fell to 1.6 per cent as a result of the uncertainty caused by the general election and its outcome.

Head of economics and forecasting for CBRE UK David Wylie said: "With a number of factors clouding the short term outlook, not least the election and some renewed nervousness in financial markets, property returns have moderated in April."

Yesterday (May 11th) evening, a deal was struck between the Conservatives and the Liberal Democrats to form a coalition government, ending five days of talks between the three major political parties in the UK.

It remains to be seen, however, how the policies set forth by this new joint government will affect the commercial property sector.

Posted by Adrian Norman.