fellow Posted February 28, 2011 Share Posted February 28, 2011 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. HPC guaranteed. Quote Link to comment Share on other sites More sharing options...
fellow Posted February 28, 2011 Author Share Posted February 28, 2011 Anyone wishing to sell should do so immediately, before mortgage lending dries up and the three interest rate rises which are due to happen this year. Quote Link to comment Share on other sites More sharing options...
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