According to the latest Owner Managed Business (OMB) Barometer from Bank of Cyprus UK, just over a quarter (27%) of OMBs believe the value of commercial property has passed its peak in the UK. Meanwhile slightly less than three quarters (73%) of OMBs think the value of commercial property will culminate within the next five years.
Looking at expectation in more detail, the barometer found that over half (52%) of OMBs see the value of commercial property reaching its peak within the next three years. One in five OMBs believe that next year, 2017, will be the peak for commercial property values in the current cycle, while another one in five believe it will come later in 2018.
The ripple effect of the property market, where London property values set the pace for the UK, can be seen through the different regional responses. Just under two thirds (65%) of OMBs in London and the South East believe commercial property values will peak by the end of 2018, compared to less than a third (30%) in the East Midlands, where a quarter (25%) say it won’t happen until 2020.
Commenting on the research findings, Lakis Kasapis of Bank of Cyprus UK said: “The pace of commercial property investment in London has slowed, reflected by the latest RICS commercial property figures that show investor interest in UK commercial property is at its lowest growth rate in two years.
“However, despite tax changes on stamp duty and the introduction of capital gains tax for foreign property owners, it is encouraging to see that three quarters of OMBs believe the peak is yet to come. In spite of government legislation and concerns over global market volatility, small businesses in the UK are optimistic and believe the next five years still hold value for commercial property.”