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"u K Banks Reduce Property Lending By £17.2Bn"

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http://uk.finance.yahoo.com/news/UK-banks-reduce-property-tele-2938667934.html?x=0

UK banks reduce property lending by £17.2bn

Andrew "Andee" Trotman, 14:44, Monday 28 February 2011
The UK's biggest banks reined in commercial real estate property lending last year to the tune of £17.2bn, it was reported on Monday.
State-backed lenders Royal Bank of Scotland (LSE: RBS.L - news) and Lloyds Banking Group (LSE: LLOY.L - news) , the two largest European commercial property lenders, cut loans by a combined £14.5bn, stated Bloomberg. HSBC (LSE: HSBA.L - news) and Barclays (LSE: BARC.L - news) reported a drop of £2.7bn pounds. The four banks lent £199bn between them, according to financial statements published this month.
The figures highlight how careful the UK's lenders have become following the global credit crisis, especially where property is concerned.
However, the Property Industry Alliance told the Bank of England last month that a £34.4bn shortfall in financing for debt due in the next four years
could trigger a second slump in property prices
.
These numbers show that banks have been far more active than people think in reducing their loan exposure to real estate
,” Phil Clark, co-author of the Property Industry Alliance’s report, told Bloomberg.

Some flashing reds here folks. Few people will invest in property when they see a bad recession coming. Why would they lend into such an enviroment and why would the government want to be seen encouraging reckless lending just after the debacle we have seen so recently.

Happening fast now.

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maybe they are dying to lend...Its just that firms dont wish to borrow so much.

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I think perhaps...they have no money to lend. People not saving. Governments not printing any more. Crows ready to stand outside their offices with nooses. It's a difficult time to be a lying cheating snivelling thief banker.

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http://uk.finance.ya...667934.html?x=0

UK banks reduce property lending by £17.2bn

Andrew "Andee" Trotman, 14:44, Monday 28 February 2011
The UK's biggest banks reined in commercial real estate property lending last year to the tune of £17.2bn, it was reported on Monday.
State-backed lenders Royal Bank of Scotland (LSE: RBS.L - news) and Lloyds Banking Group (LSE: LLOY.L - news) , the two largest European commercial property lenders, cut loans by a combined £14.5bn, stated Bloomberg. HSBC (LSE: HSBA.L - news) and Barclays (LSE: BARC.L - news) reported a drop of £2.7bn pounds. The four banks lent £199bn between them, according to financial statements published this month.
The figures highlight how careful the UK's lenders have become following the global credit crisis, especially where property is concerned.
However, the Property Industry Alliance told the Bank of England last month that a £34.4bn shortfall in financing for debt due in the next four years
could trigger a second slump in property prices
.
"
These numbers show that banks have been far more active than people think in reducing their loan exposure to real estate
," Phil Clark, co-author of the Property Industry Alliance's report, told Bloomberg.

Some flashing reds here folks. Few people will invest in property when they see a bad recession coming. Why would they lend into such an enviroment and why would the government want to be seen encouraging reckless lending just after the debacle we have seen so recently.

Happening fast now.

This is lending for commercial property, which has already had its massive crash. Cant see how this relates to residential.

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http://uk.finance.ya...667934.html?x=0

UK banks reduce property lending by £17.2bn

Andrew "Andee" Trotman, 14:44, Monday 28 February 2011
The UK's biggest banks reined in commercial real estate property lending last year to the tune of £17.2bn, it was reported on Monday.
State-backed lenders Royal Bank of Scotland (LSE: RBS.L - news) and Lloyds Banking Group (LSE: LLOY.L - news) , the two largest European commercial property lenders, cut loans by a combined £14.5bn, stated Bloomberg. HSBC (LSE: HSBA.L - news) and Barclays (LSE: BARC.L - news) reported a drop of £2.7bn pounds. The four banks lent £199bn between them, according to financial statements published this month.
The figures highlight how careful the UK's lenders have become following the global credit crisis, especially where property is concerned.
However, the Property Industry Alliance told the Bank of England last month that a £34.4bn shortfall in financing for debt due in the next four years
could trigger a second slump in property prices
.
"
These numbers show that banks have been far more active than people think in reducing their loan exposure to real estate
," Phil Clark, co-author of the Property Industry Alliance's report, told Bloomberg.

Some flashing reds here folks. Few people will invest in property when they see a bad recession coming. Why would they lend into such an enviroment and why would the government want to be seen encouraging reckless lending just after the debacle we have seen so recently.

Happening fast now.

Not mentioning the fact that we are currently going through a structural move towards online retailing, to which investors respond by insisting on preserving upward only rent reviews. Combined with the offshoring trend which undermines the office market I wouldn't touch commercial with a bargepole, even after the extreme falls of the last three years.

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This is lending for commercial property, which has already had its massive crash. Cant see how this relates to residential.

Lots of central London residential buildings are used as offices. It wouldn't be that hard to convert them for residential use.So should the residential market be resilient (which I doubt) and the commercial market weak you would have a large amount of 'pent up supply' in the pipeline that could check any rise in the residential market.

Edited by _w_

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Lots of central London residential buildings are used as offices. It wouldn't be that hard to convert them for residential use.So should the residential market be resilient (which I doubt) and the commercial market weak you would have a large amount of 'pent up supply' in the pipeline that could check any rise in the residential market.

+ loads of commercial "to let" signs make areas look unappealing to potential buyers?

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However, the Property Industry Alliance told the Bank of England last month that a £34.4bn shortfall in financing for debt due in the next four years could trigger a second slump in property prices.

Shame :lol::lol::D

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Love how they say "shortfall", as if HPI is an essential service or something. Tosserrs, sooner this all collapses the better IMO.

Yeah the sooner it's over and done with the better, just wish TPTB would learn from the mistakes and sort out some regulation to stop it happening all over again. No sign of that though :angry:

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According to this Telegraph article, the banks are planning to reduce annual property lending by two thirds over the next few years?

http://www.telegraph.co.uk/finance/economics/8352554/UK-banks-reduce-property-lending-by-17.2bn.html

The UK's biggest banks reined in commercial real estate property lending last year to the tune of £17.2bn, it was reported on Monday.

State-backed lenders Royal Bank of Scotland and Lloyds Banking Group, the two largest European commercial property lenders, cut loans by a combined £14.5bn, stated Bloomberg. HSBC and Barclays reported a drop of £2.7bn pounds. The four banks lent £199bn between them, according to financial statements published this month.

The figures highlight how careful the UK's lenders have become following the global credit crisis, especially where property is concerned.

However, the Property Industry Alliance told the Bank of England last month that a £34.4bn shortfall in financing for debt due in the next four years could trigger a second slump in property prices.

“These numbers show that banks have been far more active than people think in reducing their loan exposure to real estate,” Phil Clark, co-author of the Property Industry Alliance’s report, told Bloomberg.

Annual real estate lending in the UK may fall to £100bn over the next three to five years from £300bn now, he added.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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