Those with commercial property insurance are still feeling the effects of the recession, it has been claimed.
According to the British Property Federation, the market tends to recover more slowly than the domestic sector.
Ian Fletcher, director of policy for real estate at the group, said: "The nature of the sector means that it tends to feel the after effects of the recession. So for example, the retail occupiers [are] going out of business and that impacts on the sector."
He added that medium-sized commercial property insurance holders continue to run the risk of having the loans on their buildings called in by banks, despite recent work by the sector with the financial institutions to ensure that this does not happen.
Last week, the Financial Stability Report from the Bank of England, stated that commercial property insurance holders may be at a greater risk of defaulting on their debts because of a fall in demand and declines in rental values.
