British Land, a property company in the UK, reported a rise in underlying profits but saw the value of its property portfolio decrease by £200m due to high interest rates [cf0061a2]. The company's occupancy rates across its portfolio were high, with retail parks at 99% and business campuses at 4.2% [cf0061a2]. Despite the challenges posed by rising interest rates and reduced demand for commercial offices, British Land remains optimistic about its estimated rental value growth for the year [cf0061a2]. Shares in the company surged by 5% following the positive outlook [cf0061a2]. The commercial real estate market is facing challenges due to rising interest rates and a wave of defaults and restructurings [9f9eef5f]. Texas billionaire John Goff predicts that these rising interest rates will force some investors to sell, leading to attractive properties hitting the market [9f9eef5f]. Increased yields on the benchmark Treasury bond have eroded investor confidence in commercial real estate and are expected to contribute to lower values across all asset classes [55526752]. The rise in the 10-year Treasury yield threatens a 5 to 10 percent drop in prices [55526752]. Private lenders are becoming more selective in the commercial real estate market, worsening a liquidity gridlock as trillions of dollars of debt mature [a4f9f747]. Borrowing costs have risen more than income due to rising interest rates, tighter lending standards, and falling office occupancies [a4f9f747]. Property valuations have dropped, making it harder to sell assets [a4f9f747]. However, while there may be a clearing out of assets that no longer work in the current economy, it is not expected to cause a systemic crisis [a4f9f747].
Paragon Bank has launched six limited edition five-year fixed rate buy-to-let mortgages for portfolio landlords. The rates start at 4.65% for single self-contained homes with A, B, or C category Energy Performance Certificates and increase to 4.70% for properties with lower energy efficiency ratings. Landlords purchasing or remortgaging HMOs or multi-unit blocks can secure rates at 4.90%. The products are available for portfolio landlords with four or more buy-to-let mortgages and are available to landlords applying through limited company structures or in personal name in England, Scotland, and Wales. The limited edition products are priced around 25 basis points lower than Paragon's core range. [221b7cc2]