68% of IFAs now expect the commercial property sector to start to recover before the end of 2010 and for the first time since the recession began, some IFAs (12%) see the recovery starting this year.
The results came from the latest wave of independent research, commissioned for Reita and conducted by NMG Research in late October 2009. 258 UK based independent financial advisers took part in the study. Two years back, in October 2007, the same research revealed the first marked dip in IFA confidence in the property market as the volatile economic and market conditions began to have a real impact.
Patrick Sumner, chair of Reita, explained: "It is obviously very encouraging to see the marked improvement in property market sentiment amongst professional financial advisers, but we must ensure that there is also some caution taken. After the last serious recession, rental values fell for nearly two years after capital values started to recover in mid-1993. However, the inflation and interest rate scenario was very different then, and we should prepare for a slower, more gradual recovery this time."
