The Renaissance of Commercial Lending: June, 2014
As Investment volumes hit seven year highs and yields hit record lows, many commentators have raised concerns of a new credit bubble in the UK property market. However, the latest annual De Montfort report into the UK property lending environment has shown that this time around these trends are not a result of too much credit and that the current recovery appears to be more than sustainable going forward.
2013 saw £29.9bn of new loans, up 17% from 2012. In 2007, however, more than £80bn was lent to the sector. Therefore, whilst the overall market is buoyant and values are rising, this isn’t necessarily a sign of a new credit bubble.