Sterling hits new low


The pound has dropped to an all-time low against the Euro.

Sterling slipped to 81.28p, its weakest since the introduction of the single currency in 1999.

Hopes that the government is to announce incentives to stimulate the housing market could increase confidence on the markets, although communities secretary Hazel Blears was reluctant to confirm the initiative.

“You will have to ask the Chancellor,” the Daily Mail reported she said when pressed on the matter.

Further good news could follow when the Bank of England announces is decision on interest rates later this week – a cut could lower the cost of commercial property mortgages and stimulate borrowing.

Potential investors are struggling to resource capital and several schemes have now delayed builds until market conditions improve.

British Land could shelve the development of its ‘Cheesegrater’ city block as demand for office space has fallen.ADNFCR-1329-ID-18759552-ADNFCR