Economic uncertainty is holding back property market, says bankOct 19, 2011
More than 100 local business and property professionals from across the region attended the Lloyds TSB Annual Property Forum at the Hilton Hotel in Milton Keynes to hear the bank’s view on the economic outlook and how it could affect the property market locally.
Residential values were no longer stretched but the commercial sector had to tackle the challenges of low investment levels and slow rental growth.
Lloyds TSB head of UK economic research Adam Chester said that while recovery was under way, the major economies still faced major challenges that were affecting the property market.
“Business and consumer confidence remains fragile,” he told delegates. “Moreover, the extreme uncertainty about the prospects in the eurozone – the UK’s major trading region – poses a continued downside risk.
“The outlook for UK property remains clouded by the degree of economic uncertainty. It seems that residential property values are no longer stretched, but the commercial property market is vulnerable to slower rental growth and weak business investment.”
The event formed part of the bank’s initiative to forge relationships with local property professionals, investors and developers. It was supported by property surveyors Autchison Raffety, accountants MacIntyre Hudson, Franklins Solicitors, Wilis Insurance brokers, the national Landlords Association and the RICS.
Lloyds TSB Commercial area director Jon Pulford said: “It was encouraging to see such a strong turnout for this event, which shows that property businesses in and around the Milton Keynes area are keen to work together to do what they can to bring some life back into the market.”
The bank had seen its net lending balances to the property sector rise by 13% in the 12 months to August. Mr Pulford added: “It is important that local property operators never assume that they will be unable to secure the financial support they require.’’