Moody’s Investors Service, the credit rating agency, has forecast UK commercial property prices could fall a further 25% this year on current market levels, as market continues to be buffeted by an economy in recession and constrained investment.

In a report yesterday from Moody's on commercial mortgage-backed bonds, its analysts warned that by the end of the year UK commercial property prices could have fallen by up to 45% from their peak before the credit crisis erupted in the summer of 2007.