Prospective interest rate rise could hurt debt market
Prospective interest rate rise could hurt debt market
- 2010
- Property Week 76(36) 10 September 2010, 36(1) .
The latest King Sturge/Property Week index shows the market for providing new senior debt for property to be healthy but is threatened by the prospect of a rise in interest rates. After declines in the index since June 2009 caused mostly by reducing yields, the index has recovered thanks to falling interest rates. The amount that could hypothetically be lent has increased from 73% in March to 77% in June. Interest rate pressures later in 2010 and 2011 will make it more difficult to secure debt finance for new acquisitions or refinancings scheduled in the next three years.
United Kingdom--
The latest King Sturge/Property Week index shows the market for providing new senior debt for property to be healthy but is threatened by the prospect of a rise in interest rates. After declines in the index since June 2009 caused mostly by reducing yields, the index has recovered thanks to falling interest rates. The amount that could hypothetically be lent has increased from 73% in March to 77% in June. Interest rate pressures later in 2010 and 2011 will make it more difficult to secure debt finance for new acquisitions or refinancings scheduled in the next three years.
United Kingdom--