Is That Light at the End of the Tunnel?

So is there light at the end of the commercial property tunnel or is it just another train hurtling towards us?

Well if US Investment Bank JP Morgan is to be believed then the last scenario is the more likely. They identify that the big property developers are still overburdened with high levels of debt and that there is a strong likelihood of shareholders being required to provide extra cash to shore up weakened balance sheets. Respected London Evening Standard journalist and broadcaster Mickey Clarke, has reported that JP Morgan already estimates that UK property sector shares, up 82% since March 2009 are already 14% overvalued. He says that the bank believes the UK domestic market still looks vulnerable despite a 20% rise in property values, as this is largely offset by the cost of the huge debts.

What do we think? Well one thing is sure never was there a more important time to keep close to the experts in the sector and to talk regularly to those of us that have a special interest in property development and investment. More than ever, property portfolio holders need to ensure that they are taking the best possible advantage of the tax legislation as well as guarding against the many disadvantages for them bound up in the small print.

We are constantly involved with our clients in this sector, helping them to understand all the possibilities and pitfalls and helping them ensure that their portfolio and businesses are on as sound a footing as the current general and sector specific conditions will allow.

We’d like to hear how you see it at present so let us know and also help yourself to the resources on this property sector specific website as well as checking out wider news at www.harwoodhutton.com