Funding for Lending to Boost Business
The announcement by the Bank of England that the funding for lending scheme (FLS) is to be re-focused from households to businesses is a potential further boost to the commercial property market, which itself has seen increased activity over the last 12 months.
The changes have no implications for HM Government’s Help to Buy scheme, which is designed to address the specific issue of access to mortgages for borrowers without large deposits, unlike the FLS which was designed to boost lending more generally.
Barker Storey Matthews now part of Eddisons have seen increased activity especially with demand for industrial units and warehouses, with a rise in activity approaching 30% year on year. Values have yet to increase as finance, although easier than it has been for many years, is still not flowing freely. The funding for lending scheme has seen household mortgage interest levels down to record levels. The refocus into the business sector hopefully will allow businesses to borrow more cheaply.
Richard Jones, director of Barker Storey Matthews Peterborough office comments “we have been predicting for some time that values would be rising in 2014 and this move by the Bank of England will have some positive affect. Historically the trends in the commercial market place also tend to follow residential trends and with the residential starting to move positively perhaps now IS the time to invest in commercial property.
02 December 2013