Quintain seeing early signs of recovery

29th Jul 2009 14:56

Property firm Quintain Estates said the speed at which property prices are declining has slowed significantly since 1 April, while some sectors of the property market are showing early signs of turning the corner.The company said rental collection in the second quarter remained strong at 99.5%, compared to 99.7% at the equivalent stage of last year. The level of voids has remained unchanged but the bad debts provision has risen to £0.58m from £0.29m at the half-year stage in 2008, largely due to MFI going into administration.New leases worth £241,000 per annum have been agreed since 1 April 2009 at Tolworth, Leamington Spa, Sheffield, Leeds and Bristol. "Initial signs of yield stabilisation are starting to emerge in some specific parts of the property sector, although secondary and vacant assets remain under pressure. Against this mixed background, it is prudent that we continue to manage the business to withstand possible further falls in valuation, whilst implementing proactive asset management initiatives to enhance future value and generate income," the company said in its interim management statement.