Commercial property lending rose significantly at the end of 2017. With lending dropping by 24% in the first half of 2017, a surge in the last half of the year brought the year’s total to equal that of 2016.
The latest statistics from Cass Business School reveal that new commercial property lending in 2017 was £44.5 billion. Commenting on the figures, the chief executive of the British Property Foundation, Melanie Leech, said:
“It is encouraging to see property lending in 2017 remain consistent with the levels seen in 2016, and it is hugely significant that development funding has reached a new high – with a particular focus on residential.”
She said that the government is encouraging the building of many new homes. Developers require access to loans to finance new home building or converting commercial space for residential use.
Though large high street banks lend the majority of the money to finance commercial and buy to let residential properties, there has been a rise in the activities of smaller non-bank lenders. Their share of the commercial property lending market has increased from 10% to 14%, and they lent a total of £6 billion.
Because of a large number of lenders, it is not always clear for investors which is the best loan deal. Commercial mortgage brokers have a wide source of lenders and can match an investor’s requirements to the best commercial mortgage deal, or arrange a bridging loan for more short term finance.