Huge swathes of the UK property market are being ‘neglected’ as risk-averse lenders concentrate on prime investment in London - both commercial and residential.
Huge swathes of the UK property market are being ‘neglected’ as risk-averse lenders concentrate on prime investment in London - both commercial and residential.
Lenders are turning a blind eye to regional markets and secondary properties in the process, according to speakers at Savills’ 25th annual Financing Property conference in the City of London on Tuesday.
Speaking at the conference, which ran with the theme ‘Is there a property lending boom ahead?’, William Newsom, a senior director at Savills in London, said that, subsequently, the UK lending market is becoming increasingly polarised, despite an influx of new lenders with an appetite for ‘big ticket’ lending.
According to Newsom, there has been an influx of 52 new lenders in the UK market in the past year alone - up from just 10 a decade ago - including Aviva Senior Debt Fund, CBRE Senior Debt Fund, Europa Capital and Henderson Global Investors. There are also 47 investors offering ‘big ticket’ lending of £100 mln or more in the UK, including BayernLB, Deutsche Pfandbriefbank and Blackstone, he added. However, many lenders have a blinkered attitude to lending, preferring to focus on prime property, largely in London.
The full story is available to premium subscribers in the link below.
