Commenting on the Bank of England’s decision to cut interest rates to 0.25%:
Miles Gibson, Head of UK Research, CBRE, said: “Following the referendum result, the Bank of England made reassuring noises to the market and opted to wait another month to see if conditions improved. The MPC felt it had to take action with today’s cut representing the strongest monetary policy intervention we have seen to date. This week’s weak PMI numbers across all sectors were likely the final nails in the coffin for any members who had hoped to keep the rate at 0.5%.
“From a commercial property perspective, this base rate cut will not have any big impact on pricing, which is driven by long term rates, although pricing might be boosted by a confidence effect from this cut. With sterling priced assets still looking attractive to overseas investors, whose cost of capital is not driven by UK debt markets, London and the UK most definitely remain a strong investment opportunity.”