German Pfandbrief banks and UK banks (both clearing and non clearing) are the largest groups of lenders to the market, and are expected to continue to hold a dominant position for some time.
Since the onset of the downturn, 38 lenders with UK exposure have closed to new lending of which 70% were European banks, building societies and investment banks, the traditional providers of debt to the industry.
Reduced market competition, coupled with attractive regulatory drivers, has provided a significant market opportunity for new lenders to enter this space and the report highlights that it is insurance companies that are likely to have the greatest impact on the market in 2011.
Natale Giostra, Head of UK and EMEA Debt Advisory at CBRE Real Estate Finance, said: "We expect insurance companies to continue to exploit the retreat of traditional lenders and further establish themselves in the UK in 2011.
"The arrival of new debt providers into the market is encouraging, but also brings complexity with it as borrowers will need to establish new relationships as several European and big UK banks have effectively withdrawn from new lending for the time being."
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