House prices are set to tumble says Deutche Bank if the Bank of England does not lower rates soon, a view contrasting with Great Portland Estates group, which says it expects West End rents to gain next year, reports The Daily Telegraph.
Judging the market is currently 20% to 30% over-valued, DB says a crash is not a “central forecast”, but adds this could happen if rates are not adjusted accordingly, the Telegraph writes. Portland Estates is more optimistic, pointing out that while residential property may be a cliff-hanger, commercial property is coming off a period of falling rents and increased vacancies sparked by events of 11 September, 2001. Rents in central London may not jump hugely, but they are expected to show some growth in the next year. AIG GROUP, THE world’s biggest insurance company has reached a s...
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