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Commercial Property News
Improvement in commercial property lending 'likely to be small'
Banks will increase their lending for commercial property purchases this year, but the rise is likely to be quite small, according to one expert.
Property economist at Capital Economics Kelvin Davidson said although a climb is likely, he doesn't think the improvement "is going to be that big".
He was commenting after Savills released new data detailing 21 lenders willing to lend over £30 million for business property deals in 2010 and said while this is encouraging, the amount being offered "is still a lot lower than two or three years ago".
"The fact is lenders still remain extremely exposed to commercial property," he remarked, adding there is an "underlying motivation" to reduce this exposure.
And Mr Davidson also urged caution over relying on overseas finance noting there is a greater risk of this drying up more quickly than if it was coming from domestic lenders.
According to the Savills research, 60 per cent of the 21 lenders on the list are based in Germany.
Property economist at Capital Economics Kelvin Davidson said although a climb is likely, he doesn't think the improvement "is going to be that big".
He was commenting after Savills released new data detailing 21 lenders willing to lend over £30 million for business property deals in 2010 and said while this is encouraging, the amount being offered "is still a lot lower than two or three years ago".
"The fact is lenders still remain extremely exposed to commercial property," he remarked, adding there is an "underlying motivation" to reduce this exposure.
And Mr Davidson also urged caution over relying on overseas finance noting there is a greater risk of this drying up more quickly than if it was coming from domestic lenders.
According to the Savills research, 60 per cent of the 21 lenders on the list are based in Germany.
Fri, 19th Mar 2010