Savills’s data – which analyses 100 lenders – suggests that banks have again become attracted by the yields offered on commercial property.
William Newsom, Savills UK Head of Valuation, said: "Major names have stated strong ambitions to lend in the property market following pricing corrections and a reduced cost of funding. In March when we conducted our last survey, we weren’t aware of any banks prepared to lend above £100million on their own, but today perhaps half a dozen are prepared to do so."
But he also warned: "Despite this, lenders are treading a path of prudence. Business volumes remain reduced due to a scarcity of good quality product and cautious lending policies as property remains largely out of favour with bank bosses. For the first time in years I am not aware of any significant new lenders looking at coming into the market despite these favourable conditions."
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