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Property industry leaders announce 'game-changing' breakthrough in bid to reduce risks of commercial property lending boom and bust

Property leaders have unveiled what they are terming a major breakthrough following a decade long drive to discover reliable metrics that help reduce the risks posed to the UK financial system by commercial property crashes and help prevent the turmoil faced by the industry in the aftermath of the global financial crisis by better and earlier spotting the warning signs that commercial property has become over-valued and enabling lenders and investors to reduce their exposure accordingly.

The Property Industry Alliance, which brings together leading representative bodies from the UK commercial property industry, acting through its Debt Group, has published the results of a two year research project focused on identifying effective long-term value metrics that can be used by lenders and regulators to help identify periods of significant overvaluation and anticipate major crashes.

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