05

Jun

Written by Richard Farnworth

Commercial property lending has hit a 6 year high

According to recent research, commercial property lending rose by more than 50% in 2014.

With a number of non-traditional lenders entering the commercial property market, the value of commercial property loans increased dramatically to £45.2billion by the end 2014.

A study by De Montfort University indicates that commercial property lending is now at a six year high dating back to 2008.

Outstanding debt has also fallen from £180billion in 2013 to £165.2billion at the end of 2014.

The news will be welcomed by those seeking to purchase a commercial property and is seen as evidence of a more competitive market by many.

Melanie Leach, chief executive of the British Property Foundation, said: ‘The CRE lending market recovery is now well and truly established, with the further reduction of outstanding loans and the significant fall in the number of distressed loans indicating a healthier and more competitive market than we have seen for years.

‘The increasing diversification of lenders has been marked over the past year and we feel this is broadly positive for the market.

‘Not only will a large presence of non-bank lenders provide our sector with alternative sources of finance ‘ lenders with different investment horizons and business strategies; a more diverse finance market can also contribute to finance stability by spreading exposure to UK real estate among a greater range of investors.â?

Helen Robinson, head of conveyancing at Commercial Matters, commented: ‘It is pleasing to see this upturn in lending, especially from a range of different lenders.

‘It is important that those seeking to purchase commercial property can access the financial support they need and we are hopeful this upturn will continue and provide a boost to any who are seeking to make an investment.â?

Contact Commercial Matters for expert advice on your commercial purchase

Here at Commercial Matters, our specialist team of business property solicitors in Lancashire can provide exceptional and affordable legal support to anyone seeking to purchase a commercial property.

For more information, call our dedicated team on 01282 695 400, or simply complete the online contact form to arrange a quick call-back.

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