Forced sales could impact upon UK property market

A possible wave of forced commercial property sales in the UK could turn the current downturn in the real estate market into a full-blown crash, it has been reported.

Many insolvency experts are preparing for a rise in commercial property-related business, according to the Guardian.

Property prices have corrected quicker than during the last market crash, with commercial real estate down by one-fifth and house prices down by nearly ten per cent.

Jon Gershinon, head of the insolvency team at the property services company Allsop, said: "As the economy continues to weaken, this carries the inherent risk of tenant default and therefore those borrowers having difficulty meeting interest payments."

Property prices dropped by 30 per cent in the early 1990s, according to PropertyMark.co.uk.

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