Capital Economics has noted that commercial lenders may not increase their activity as much as was hoped.
Many financial institutions are still trying to reduce their
commercial lending, in spite of a recent report that would suggest otherwise, according to Capital Economics.
Research from Savills revealed this month that 21 lenders claimed they were prepared to lend upwards of £30 million in
commercial property finance, while in October a similar number said they would lend £20 million.
Kelvin Davidson, property economist at Capital Economics, said that he does expect commercial lending to improve in 2010, but the increase may not be as big as expected.
"The fact is lenders still remain extremely exposed to commercial property and there is an underlying motivation to get that exposure down," he added.
"That could happen through lending to other sectors rising faster than commercial property."
Last month, Knight Frank reported that offices in central London are set to record double-digit rental growth this year, with prime rents forecast to rise by 19 per cent.
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