Lamport Bassitt Solicitors - Legal News - Commercial property 'in danger of being overvalued'


	LATEST LATEST LEGAL NEWS ARCHIVE		LATEST NEWS & EVENTS Commercial property 'in danger of being overvalued' Recent increases in commercial property capital growth could result in overvaluations and a possible fall in values later this year, it has been claimed. According to Kelvin Davidson, property economist at Capital Economics, the longer the "mini boom" continues, the higher the chances that there will eventually be a drop in the market. The expert made his comments after the release of a prediction by King Sturge that property rents will go up by 10.5 per cent before the end of 2010 in prime central London and by 7.6 per cent in the West End. Mr Davidson remarked: "Our forecast is that you will see this mini boom - not only in London, but across the country - fade out later this year." Economic growth will be "pretty weak" and as that becomes apparent in the market, it is possible that capital values will fade, he went on to claim. Related Articles: 30/3/2012 - EPC changes to affect buy-to-let landlords 27/3/2012 - Rent increases drive strong buy-to-let yields 27/3/2012 - Property industry welcomes 'sensible' planning reforms 2/3/2012 - Arla advises landlords to 'invest wisely' 1/3/2012 - Basel III could hit commercial property lending More Property Law News