MID-SIZED owner-managed businesses should consider buying rather than renting their property to take advantage of low interest rates and beneficial pension arrangements, urges the south west region of the Royal Institution of Chartered Surveyors.

Regional director Matthew McKaig says the move could also help stem south west businesses' annual waste of £1 billion on property expenditure.

"One of the biggest factors in the south west's commercial property market is the boom in demand from mid-sized owner-managed businesses to buy rather than rent their office, factory, shop or warehouse," said Mr McKaig.

"These companies have spotted that reduced stock market performance is undermining their pension funds at a time when low interest rates mean that a mortgage to buy a business property can be cheaper than the equivalent rent."