A new report has revealed that UK commercial property lending rose significantly in the second half (H2) of 2017.
According to new data published by Cass Business School, lending picked up substantially in H2, following a relatively subdued first half (H1) of the year.
In H1, commercial lending was down by almost a quarter (24 per cent) on figures recorded in H2 2016, the figures reveal.
But in H2 2017, lending soared by £26.8 billion, pushing commercial property lending for 2017 as a whole up to an impressive £44.5 billion – a similar figure to the total recorded for 2016.
Melanie Leech, Chief Executive of the British Property Federation, described the figures as “encouraging” at a time when the UK Government faces a number of challenges.
Cass Business School’s figures come at a time when separate research from real estate group Savills suggests that commercial property investment volumes remain strong.
According to Savills’ latest data, commercial property investment volumes reached £12 billion in the first quarter (Q1) of 2018 – a whole 14 per cent above the market’s long-term average.
Mark Ridley, CEO of Savills UK, said: “It’s clear that activity in the first quarter of 2018 is broadly in line with previous healthy years and we expect activity to pick up over the course of the year as underlying fundamentals improve.”