Some of the City’s biggest investment banks have stopped lending to commercial property buyers, stifling deals in an already depressed market according to reports in the Sunday Telegraph.
According to Savills, eight of the 97 lenders in the UK commercial real estate market have shut their doors to borrowers, while 11 more remain reluctant to take on risk.
Almost 30 will lend but only on a qualified basis – such as to long-standing clients buying robust assets.
Lending terms have also tightened with rates for secondary properties increasing by up to 1.5 percentage points.
As a result, a large number of senior bank staff have begun moving jobs. Property financial services specialist Capmark is also understood to have suspended lending and made staff redundant.
However, some banks are willing to lend on deals over £150m.