Billions of pounds could be wiped off UK commercial property as a result of the mini-Budget, Goldman Sachs has warned.
The bank said the sharp rise in borrowing costs would result in a fall of between 15% and 20% between June this year and the end of 2024.
The five-year swap rate used by commercial property borrowers has soared from around 1% a year ago to more than 5%. Goldman estimates that the gross financing costs for the listed companies it covers, including British Land and Hammerson, will rise by about 75% over the next five years.
