A recent report from the Bank of England, (BOE) has stated that the total level of private debt on commercial property in the first quarter of the year rose by 12 percent. The BOE is continuously engaged in spotting for signs that the economy might be leading itself into a recession. One area which the bank is worried about is the issue of property debt which it is claimed might be a threat to stability.

Another report gathered its data on the assumption that interest rates will not rise. Furthermore, in the present economic environment, debt is likely to remain affordable, with investors able to take on a higher degree of leverage. The report also went on to forecast that the net capital invested in commercial property will rise to £27 billion which is an increase from last year. With an increase of 70% from 2004, last year was a record period for acquisitions. Market experts believe that was driven largely by an increasing number of corporate deals, along with non-domestic purchases that account for approximately a fourth of all UK real estate acquisitions. Cross-border investment continued to grow, with the UK taking £13 billion in cross-border acquisitions in 2004 year, which accounted for 45 percent of the European total, ahead of France’s 22 percent and Italy’s 9 percent.