Despite a “misjudged blanket stigma” attached to the sector, DM Hall’s Commercial Market Review said the “fundamentals remain sound and property assets have proved to be robust and resilient”.
Acknowledging the difficulties facing the industry in the current climate, the report said to “write off the sector, as some have been doing for at least three years, on the basis of generalised information and broad assumptions is short-sighted to say the least”.
However, DM Hall said the main feature of the licensed property market has been inactivity. Although “alternative sources of funding” have emerged, it said a true recovery won’t be possible until banks start lending more.
“It seems unlikely this will happen until the financial institutions have confidence that the sector as a whole is on a sound footing,” said the report.