Accountancy firm BDO warns that fears over rising taxes and unemployment will lead to turbulent year

The UK property market could face another turbulent year in 2010, with a full recovery still a long way off.

Accountancy firm BDO has warned that there are underlying factors in the sector that will hinder a pick-up, preventing commercial transactions reaching pre-recession levels.

Solly Benaim, head of real estate at BDO, said: “The combination of an election year, which is bringing considerable uncertainty across industry sectors, coupled with continuing fears about unemployment and consumer spending, and concerns over rising taxes later in the year all have the potential to undermine the commercial property market.”

In addition, BDO said banks are releasing property slowly into the market, resulting in too many investors chasing a small number of deals.

Benaim concluded: “For all of these reasons, we believe that it will be a long slow recovery in the market.”

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