Commercial property hopes for new year fillip


After a difficult year for commercial lettings, leading firms will be hoping for an easier ride in 2008.

Until earlier this month, interest rates were on an upward trajectory making credit harder to obtain.

At the same time, consumer spending was slowing and energy prices were heading in the opposite direction.

To make matters worse, turbulence in the financial markets has made credit harder to obtain.

The liquidity squeeze shows little signs of easing meaning the December rate cut will do little to ease worries.

Instead, commercial property agents will be hoping for further reductions in the new year to make loans cheaper and to inject some fresh life into the economy.