Jump to content
House Price Crash Forum
Sign in to follow this  

Banks To Reduce Property Lending By Two Thirds

Recommended Posts


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.

HPC guaranteed.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 297 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%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.