Property Markets See No Early Relief From Rate Cut Medicine

CB Richard Ellis Expects Cash-Rich Buyers To Benefit In 2009

Head of UK Research Peter Damesick commented: “Some medical conditions require a lengthy course of treatment to show benefits. The chronically constipated state of UK credit markets has seen little if any relief as yet from sharply lower interest rates. The Bank of England has upped the dose again but it will be some months before the patient experiences any real relief from discomfort. Further increased doses are likely to be needed to unblock the system.”

“In the meantime, property prices in both commercial and residential markets continue to slide. For buyers with access to finance, 2009 looks set to offer exceptional buying opportunities. Cash-rich investors in commercial property will have the field until the effects of cheaper money eventually kick in – and that will not happen until a semblance of normality returns to the lending markets.”