Following the vote in favour of Brexit, 95% of banks are still lending in the UK: brisk activity continues despite the referendum result, according to the European Lending Trends survey, which is being released Wednesday at Expo Real 2016.

bank leading property rs

Bank Leading Property Rs

The Cushman & Wakefield report finds that across the continent lending conditions remain positive and the outlook is bright, with over 80% of lenders reporting an increase in originations and refinancing in the next six months.

'There has been no change in the UK after Brexit, the fears of a negative impact have not materialised,' said Nigel Almond, head of EMEA capital markets research at Cushman & Wakefield. 'What we have seen is a shift in sentiment, with LTVs falling from 65% before the referendum to around 60% now.'

LTVs have fallen across Europe and are now all below 60%, ranging from 59% in London, Amsterdam, Paris and Frankfurt to 53% in Milan. Since January this year, margins have risen by an average 50bps across Europe.

Risk aversion is still a big factor in the market, with a clear focus on prime and non-prime standing investments in top tier markets and a lot of activity at the lower end of the market, In lower-tier markets there is a marked preference for better quality assets, with more appetite to provide development finance on pre-let schemes. Very few lenders are willing to finance speculative development, the survey finds. 'People are more cautious and they focus on long-term secure income,' said Almond. 'That’s where the demand is.'