Commercial property 'continuing to see lending'

Office design news from Morgan Lovell

Published on 09-06-2010

Banks are continuing to lend to office interior and commercial property developers in the UK, it has been claimed.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said there is a widening gap between the ends of the commercial property ladder, but the fact banks are continuing to lend is helping to keep the market moving.

He commented: "I think it is fair to say that what we have seen in the early stages of the recovery ... is that the prime does get squeezed up and other parts are going to get left behind."

Mr Rubinsohn added that despite a few notable examples, the recession turned out to be fairly straight forward for the office design market and the sector is now getting back on to its feet.

According to a recent report by NB Real Estate, lending to the UK commercial real estate sector increased by £727 million in the first quarter of 2010 compared to the previous quarter.

Indeed, this is the first net increase in lending recorded since the first quarter of 2009.

Posted by Ian Johnson.