KEVIN DAVIDSON | CAPITAL ECONOMICS
Momentum in the City is up but it is not clear that the rental downturn is over outside of the City which could affect long term capital values. Banks are still exposed to the commercial market and it could quickly become overvalued again – it is not profitable or stable by any means.
AARON GUY | COLLINS STEWART
This market turned a corner a while ago and I’m not surprised by British Land’s results. The world was coming to an end in January 2009 but all that risk has been taken on by the taxpayer. There are some negatives, share prices are trading at a premium and interest rates are artificially low – it’s not over yet.
TINA COOK | CHARLES STANLEY
British Land’s results were better than expected and for the first time it looks as if we are seeing genuine green shoots appear. But there is still pressure on rents. Banks have a high level of debt and might look to offload their property portfolios - plus the threat of a double dip recession.