The majority of UK banks are only prepared to lend between £25 million and £50 million for commercial property, according to a new survey.
The majority of banks are not prepared to lend more than £50 million for
commercial development, according to new data.
Just under a third (30 per cent) admitted that they were prepared to dedicate up to £100 million to
commercial finance, while just over one in ten (12 per cent) are willing to lend over £100 million, figures from Jones Lang LaSalle indicate.
The survey is based on analysis of
commercial lending plans among UK banks up to 2011, although the positive outlook among many lenders enabled a quarter of respondents to forecast that £100 million plus deals will be available by the end of 2010.
This nearly doubles to 48 per cent when forecast to the end of 2011, the financial services firm report shows.
Commenting on the findings, director of Jones Lang LaSalle's valuation advisory team Jeremy Handley explained that lenders will be more prepared to lend as the real estate market improves and "debt markets free up".
He said: "What we have now is dramatically different to the situation we had at the beginning of the year, and lenders are now finding they have more money to lend than the market can absorb."
However, the company has predicted that 2010 will be a challenging year for investors to navigate across Europe, with recovery likely to be uneven.
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