The number of commercial property transactions in the UK reached
its highest level since the financial crisis started, with 115,400
sales taking place during the last year.

Data from HMRC shows that the number of transactions is up by 24
per cent from the overall low of 92,900 reported during the
2008/2009 financial year.  The peak came just before the onset
of the credit crunch, when 139,000 sales took place during the
2007/2008 financial year.

The new analysis of the data was carried out by commercial law
firm EMW, and suggests that property based in England continues to
dominate the overall UK market.  97,500 of the commercial
property transactions (85 per cent) carried out last year were
based in England.

Property continues to attract both UK and overseas investors due
to its relatively high yields, especially when compared to other
forms of investment.

Nick Marshall, principal at EMW, said:

'Commercial property assets are proving increasingly attractive
to investors looking for higher yields in an environment with
record low interest rates and this is driving activity towards
pre-credit crunch levels,' said Nick Marshall, principal at
EMW.

'There has also been a surge of interest from overseas
investors, with the UK offering investor friendly lease terms. The
relative shortage of vacant prime office space in central London is
also making the market more attractive to investors,'

'Bank lending has also picked up which has led to more activity in
the market and lenders are now happier to fund purchases at higher
loan to value ratios. Without higher LTVs, many property investors
were finding it hard to get the economics of their investments to
work,'

Downward pressure on prime yields is also set to resume across
six sectors of the market, according to the new Commercial Market
in Minutes report from Savills.  Income and rental growth is
set to drive the total return, and a lack of new stock coming onto
the market could well lead to a decline.

Mat Oakley, commercial research analyst at Savills, said:

'Rental growth is no longer just a London story and while office
and retail in the Capital remain at the top, an outward ripple of
recovery suggests strong prospects for rental growth across an
array of sectors and regions. As we have seen before, this will
benefit the South East and key regional cities before the rest of
the UK,'

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