Rate cut 'fails to boost sector'

Despite yesterday's shock global base interest rate cut the commercial property market has not had an upsurge in activity.

Reuters reports that commercial property values have fallen 22 per cent since June last year and confidence for banks to lend to each other has not yet returned.

Speaking to the news provider, Keith Steventon, head of research at global property consultant Atisreal, noted that action needed to be taken by the government because confidence was "non-existent" and investment was down.

Mr Steventon stated that the rate cut "will have limited immediate direct effect on property investment as lending conditions need to soften first. For that, banks need to start trusting each other."

The news provider added that demand for office, industrial and retail space was still slack.

In related commercial property news, redevelopment of the East Street area of Farnham in Surrey recently got the go-ahead from Waverly borough council after more than ten years of planning negotiations.