“Delay and pray” continues; low interest rates crucial for outlook

The latest De Montfort University (DMU) Lending Review makes uncomfortable reading for the commercial property market, showing that a full 20% of outstanding loans by value are now distressed. For now, with economic growth likely to continue (albeit slowly) and interest rates set to remain low, we think a surge in fire-sales remains unlikely. But increased repossessions by lenders are likely to remain a risk to the commercial property outlook for some time to come.