Property slump “just part of the cycle”


Investors should not revert to panic-selling commercial property as the current slump is just "part of the cycle", said a senior analyst.

Meera Patel, for Hargreaves Lansdown said it was inevitable, following years of growth, that property will drop and it should be seen as a long-term investment.

"It is painful whilst it’s happening, as you see your investments fall in value. However, over the long term it should come back up. You can’t completely rule out the fact that, at some point, commercial property will become attractive again," she said.

She advised that once yields rise to around six or seven per cent, "it could potentially be a good buying opportunity again".

The US Federal Reserve slashed its federal funds rate yesterday by three quarters of a per cent in the hope it might rejuvenate the country’s troubled markets.

UK rates remain under review and will be announced by the Monetary Policy Committee (MPC) next month.

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