HSBC’s UK business referendum surveyed over 3,400 businesses and found 40 per cent of UK companies between six and ten years old do not own their own premises, even though 70 per cent of owners agree that it would help their business to grow.
The referendum found very little difference between the number of new (two to five years old) and more established businesses (six to ten years old) owning their own property.
Ian Moore, HSBC’s head of commercial property, said: “We estimate that 76,530 UK businesses will celebrate their fifth birthday in 2005 and while some owners are nervous about investing in commercial property, for a young business it can provide additional flexibility and lay the foundation for expansion.”
He added: “Businesses which are five years old are likely to have come through some hard times.
“Typically, they have a hard-won understanding of the market, a degree of trading security and robust and experienced management – they are ready to think about the next stage in their evolution and buying property can help.”
Stephen Johnson, sales director at Commercial First, said the commercial mortgage market was going from strength to strength, particularly the small and medium-sized sector.
He said: ‘The results suggest the need for businesses to raise finance which further highlights the prime opportunities for intermediaries to increase their revenue streams in what are tough market conditions.
“Intermediaries currently only make up around 15 per cent of the commercial sector – the more awareness that business customers have of the ability to arrange mortgages easily through intermediaries, the larger the market share will become.”
