UK commercial property sector is plummeting due to interest rates:
Goldman Sachs warns that there is a £14bn price crash due to the exponentially rising interest rates. The investment bank predicted that values across the sector could fall by 15 per cent to 20 per cent between June this year and the end of 2024, effectively wiping up to £14billion off the portfolios of some of the industry’s biggest players. Goldman analysts said the sharp ‘price correction’ would come as a result of the rising cost of funding as interest rate hikes from the Bank of England made it more expensive for developers to take out loans. Oil prices were on the back foot amid worries fuel demand will be hit by a global economic slowdown, a fear exacerbated by the prospect of ever-higher interest rates.
Is there hope for a decline in interest rates and thus a return to normality for the British economy?