Distressed commercial properties coming to the market rose in every region in the world in the second quarter, with the UK in particular seeing a rise in interest in property sold by owners experiencing problems.

According to a study today by the RICS, more than three-quarters of the 27 countries surveyed saw a rise in distressed property sales in the second quarter compared with three months earlier.

This rise came despite generally low interest rates, which have provided some support for landlords facing financial difficulties, as well as help by some governments to banks lending to the sector.

RICS said that low interest rates had so far limited the problems, and predicted that falling rents and rising corporate bankruptcies were likely to further increase the incidence of distressed properties in the coming quarters.

Financial Times