No less than 62% of UK property experts believe that the availability of funding from banks and their willingness to refinance property loan books has deteriorated in the last few weeks, according to a quarterly update from Reita, the education and awareness campaign for property investment and REITs.
No less than 62% of UK property experts believe that the availability of funding from banks and their willingness to refinance property loan books has deteriorated in the last few weeks, according to a quarterly update from Reita, the education and awareness campaign for property investment and REITs.
On a more positive note, however, the Reita Expert Panel expects returns from REITs and property securities to be slightly better than from direct property over the next 12 months and, with future dividend yields likely to be around 6%, there are signs of interest from long-term income investors.
'One of the keys to an improvement in the property market is the return of liquidity but, despite recent action by governments around the world, less than 10% of the members of our expert panel reported any improvement in the availability of funding or willingness to refinance property loan books,' said Dave Butler, head of external affairs at Reita. 'On the contrary, more then 60% of the members reported a deterioration in the banking situation in the weeks leading up to the survey, with LTVs lower, margins higher and no German banks in the game.'
