Less than 12 percent of banks are prepared to lend more than 25 million pounds to prospective commercial property buyers in the United Kingdom, a report from Savills showed on Tuesday. Savills' study and a separate report from Fitch ratings agency, also released on Tuesday, showed that the banks are reluctant to lend in the battered real estate market. In interviews with more than 100 global lenders, Savills found that the appetite for UK property lending has waned dramatically in the past year, with less than half those surveyed keen to do business in Britain despite sharp property re-pricing and currency changes. Only twelve lenders are still actively considering deals in excess of 25 million pounds - Societe Generale, The Bank of London and the Middle East, Abbey, Nationwide Building Society, Helaba, Deka Bank, WestImmo, Landesbank Berlin, Munich Hyp, Deutsche Postbank, LBBW and D G Hyp, the Savills report showed. “I know of at least half a dozen other lenders who may also be on the list, but the level of actual loans committed is variable,” said William Newsom, head of Savills UK valuations. Savills said about 40 of the 100-plus lenders surveyed claimed to have an interest in UK property lending, although they had varying borrowing terms. However, many organisations are lending strictly to existing customers only and approvals processes have become slower and more detailed. In a separate report, Fitch said that lenders had largely suspended UK mortgage lending but remained reluctant to act on loans in default following the record fall in UK property values. Such contradictory behaviour has added to the high levels of uncertainty in the UK property market, Fitch said. “By failing either to provide new finance or call in existing loans, banks are suppressing the impetus towards price discovery that would accompany property transactions,” the report said.
