The sharp rise in borrowing costs since Kwasi Kwarteng’s “mini-budget” means that most of Britain’s warehouses, offices and shopping centres will lose as much as a fifth of their value over the coming two years.
The warning came from Goldman Sachs, whose team of analysts sounded the alarm over the outlook for UK commercial properties, values of which they expect will be 15 per cent or 20 per cent below where they were this summer, come the end of 2024.
The US investment bank’s gloomy outlook will add to fears that commercial properties in the UK are on the brink of another sharp fall.
As with homeowners, rising interest rates have made borrowing more expensive for commercial landlords too. The five-year swap rate, used to
