Lenders are still off-loading property assets in a bid to draw a line under their losses according to a new report.
The latest UK real estate insights survey by PwC found that while many businesses and their lenders have been adopting a holding and managing strategy for their property portfolios in 2009, there are signs that some lenders are increasingly likely to seek to dispose of distressed stock by placing it on the market.
Matthew Hammond, partner and restructuring expert at PwC in the Midlands, said: “We are expecting to see a significant upturn in the volume of commercial property coming onto the market during the second half of 2010 as lenders decide that there is little point in putting things off any longer. We are expecting them to take the opportunity to cash in on any fixed property assets, despite their depressed value, which is largely due to a lack of tenant demand.
“While there is some concern that this influx of property to the market could cause values to slide once more, we are actually expecting the market to show resilience by remaining static or even continuing to improve slightly through 2010 as growing demand for quality stock begins to spread.”