Property & Development Magazine (PAD) PAD 419

1.qxp_feature 2 01/06/2015 09:15 Page 1 01 PROPERTY AND DEVELOPMENT GENERAL MANAGER: KENNETH BOOTH MAGAZINE MANAGER: SAMANTHA BURNSIDE FEATURE MANAGERS: VAUGHAN WILKS CHRIS DUDLEY JODY GREAVES GROUP EDITOR: DANIEL STEPHENS EDITORS COMMENT Commercial Property Outlook Improving EDITOR: CIARAN JAROSZ For too long it seems we’ve had the doom and gloom of the recession hanging over our heads like a ART EDITOR: STACEY BREWER mainstream opinion with negativity, but it might be tough for them to disagree that, while commercial DESIGNERS: CARLA TAYLOR SAM DICKINSON CONTRIBUTORS: JEFF SENIOR AMY MARSDEN malevolent cloud from a Stephen King novella. Most commentators still feel the need to populate property sector challenges still prevail, the overall outlook is one of optimism. Indeed, over the last 12 months the situation has dramatically improved. Figures do tell us that in the U.S and in many places around continental Europe the amount written off by banking institutions in regards to commercial property loans is still at an uneasy level. But in the UK, figures released this month show us that amounts written off on such loans has greatly decreased. While prices are improving, importantly, write-offs have been dramatically cut. In the last year £23.2bn PRODUCTION: VICKI LINDSAY LISA POLLINGER was knocked off the books of UK lenders for the value of defaulted commercial property loans – a drop ACCOUNTS: NICK CHARALAMBOUS around the 15% mark. PROPERTY AND DEVELOPMENT commentators and experts believe will continue. With UK lenders enjoying a reduction in “distressed” IS PUBLISHED BY: PAD LTD, loans, we can eagerly look towards growth. 1st Floor Turnbridge Mills, Quay Street, Huddersfield, West Yorkshire, HD1 6QT TEL 01484 437310 of 50%. This is in addition to a reduction in bad loans to the tune of £22bn. Meanwhile the average for each commercial property lender of defaulted capital for the overall size of their loan books hovers And while UK inflation has stagnated at present, the price of property has risen, a trend that many CBRE was, as one of many examples, optimistic about the long term future. “Whether or not a ‘new normal’ prevails, a welcome stability has returned to the market. CBRE forecasts a return to more normal conditions, with much of the economy – and the property market – returning to a more PAD Ltd Property and Development Magazine is published by PAD LTD. Company registered in England & Wales. All material is the copyright of PAD LTD. All rights reserved. Property and Development Magazine is the property of PAD LTD. This publication may not be reproduced or transmitted in any form whole or part without the written permission of a director of PAD LTD. Liability: while every care is taken in the preparation of this magazine, the publishers cannot be held responsible for the accuracy of information herein, or any consequence arising from it. In the case of company or product reviews or comments, these have been based upon the true and honest opinion of the Editor at the time of going to press. sustainable and stable pattern of long term growth,” it said. Some will cite the USA’s economy seeming to hit an upturn only to fall back again suggesting any positive economic trends in the current marketplace must be given careful, guarded consideration. But the UK economy has now shown signs of strength either side of the election which points to a much more pronounced period of growth. DANIEL STEPHENS GROUP EDITOR

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