Commercial real estate investors
in the UK could be encountering problems with bank lending, according to the latest result of a Jones Lang LaSalle reports.
The firm has noted that lending to the property sector
is still limited with less than 40 per cent of respondents stating they would be lending amounts above GBP 100 million by the end of 2011, compared with around 50 per cent thinking they would do so in last year's survey.
Figures from the Investment Property Databank show that the UK commercial property market saw capital growth of 0.2 per cent in February.
Jeremy Handley, director of Jones Lang LaSalle Valuation Advisory, said: "The rollercoaster of financial crisis and sovereign debt continues and it seems certain that the European banking crisis is going to have profound and long lasting implications for the commercial property sector."
It comes in the wake of comments made by Capital Economics which suggest that while opportunities exist in commercial property outside of London, but the overall market is "very patchy".
- Monday 21 March 2011