SPF predicts financing ‘black hole’ will deepen North South divide

The Scottish Property Federation (SPF) will warn today that the UK’s financing ‘black hole’ will deepen still further the gap between the South East and the rest of the country.

The SPF will issue the warning at its autumn conference today as the UK property industry braces for the impact of maturing debt and public sector spending cuts on an already struggling industry.

David Melhuish, director of the SPF, said: “Whilst prime commercial property in London and the South East looks fairly robust, the story for the rest of the UK is far less rosy.

“The property debt will make finance difficult to come by and in this context the public capital expenditure cutbacks raise a genuine concern over future levels of public investment in the Scottish economy.”

The most recent De Montfort University commercial property report shows £160bn of debt is due to mature over the next five years with the Government’s Comprehensive Spending Review revealing £81bn of cuts during the same period.

nick.whitten@estatesgazette.com

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