Independent Chartered Surveyors
& Commercial Property Agency
Regulated by RICS
13/11/2014 17:02

The recent national inflation data showing that prices have dipped if anything has influenced the Bank of England to keep Base Rate on hold and pundits reckon they will probably stay that way until mid-2015. By that time we will have been through a General Election and it is anyone’s guess how that will turn out with politics being in such a state of flux at present.

It has some relevance to borrowing rates for commercial property acquisitions, in that the chances are such rates will slowly come down over the next year or two. However in many cases these are currently set as many times base rate, unlike the heady days of 2005-7 when some clients of ours were on as low as 1.5% above base rate. Base rate was of course much higher then, varying between about 4.5 and 5%.

 

Read More »