Banks are lending more money to the commercial property sector than they were a year ago, according to a major real estate agent.
Mortgage lending for
commercial development projects is now more readily available to
property investment firms, it is claimed.
Borrowing from banks in the commercial property sector rose by significantly in the first quarter of 2010, Capita subsidiary NB Real Estate told the Independent.
Based on figures from the Bank of England, the firm found that lending to commercial development firms had risen by £727 million since the same period last year.
The director of valuation at NB Real Estate Paul Watling told the publication that this was a sign of increasing confidence in the commercial property market.
"As capital values and rents have started to recover, so banks have shown a greater willingness to recommence lending to the commercial property sector," he added.
While this news is certainly positive for the sector, last week Standard Life Investments' investment director Andrew Jackson said commercial property values in the UK could be expected to fall by up to five per cent this year.
Posted by Lisa Fear.
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