Commercial property lending rose sharply in second half of 2017
Commercial property lending rose by an impressive £26.8 billion in the second half of 2017, pushing total lending for 2017 as a whole up to £44.5 billion.
The news follows a slump in lending during the first half of the year, which had previously left many commentators fearing that the market would not perform quite so well as during the previous year.
However, a new report from Cass Business School reveals that total lending for 2017 easily matched 2016 figures thanks to bumper lending activity towards the end of the year – which experts are hoping will continue long into 2018.
It comes at a time when separate research from Savills suggesting that the market is already starting to perform well this year, with commercial property investment volumes rising by 14 per cent in the first three months of 2018, hitting an impressive £12 billion.
Mark Ridley, CEO of Savills UK, said: “It’s clear that activity in the first quarter of 2018 is broadly in line with previous healthy years and we expect activity to pick up over the course of the year as underlying fundamentals improve.”
Melanie Leech, Chief Executive of the British Property Federation, added that the figures were “encouraging,” suggesting that the market will continue to perform well over the coming months.