Average Commercial Real Estate Loan RatesWeighted average interest rates for commercial real estate loans
While the most extensive survey of the UK commercial real estate credit markets shows that new loans fell 17 per cent in 2016 relative to their post-crisis high in 2015, the decision to exit the EU appears to have had little effect on new loans. £21. 4-bn in the first half of 2016 and a slightly higher 23. 1-bn in the second.
With a postponement from 2015, when 55. 6% of the bonds outstanding were spent on new business, 61% of new borrowings in 2016 were refinancings for current borrowings, benefiting those with a large customer portfolio. By the end of 2016, the overall value of the loan book identifiable by this study had risen by a modest 0.5 per cent to 191 pounds.
5 billion, which includes draw and non-draw, nevertheless fell by 2.1 per cent from the end of 2015 to £164.8 billion. British banks and building societies boosted their new lending shares to 45 per cent by year-end 2016 from 34 per cent in 2015.
Whilst some non-banks also increased their shares of the pie, most types of creditors, among them US commercial banking and insurers, experienced a decrease in their shares. In addition, British banking and building societies were accountable for 44 per cent of commercial property finance and 69 per cent of total housing finance.
Overall, they made £5.4 billion in promotional loans in 2016. Overall aid provided by all creditors amounted to £7.7 billion. It also shows that cash in the markets continues to be high, with prices and credit conditions competitively priced for premium properties. Average interest spreads declined slightly in the course of the year, but rose in the second half of the year, indicating an end to the downward margin trajectory seen since 2012.
The average maximal loan-to-value rates fell during the year by around 5 per cent in the case of first-class older exposures and the average loan-to-value rates for older exposures backed by collateralised properties were below 60 per cent in the case of offices, retailers and industry at year-end. From a geographical point of view, the figures show significant differences between regions, accounting for 63 per cent of total real estate backed debts in London and the south-east.
On the other hand, 12 percent for the North, 11 percent for the Midlands and Wales and 4 percent for Scotland. Commenting, Ion Fletcher, directeur de la politique financière, British Property Federation, kommentierte : Mr Neil Odom-Haslett, Président, Association of Property Lenders, fügte hinzu : Ian Malden, Head of Valuation, Savills fügte hinzu : Tim Crossley-Smith, National Head of Valuation Consultancy, GVA fügte hinzu : Chris Holmes, EMEA Head of Debt Advisory, JLL additionerte :