Money borrowed for property deals reached its highest ever level as a proportion of total UK debt, new figures revealed yesterday.

Research from the Bank of England shows that the total outstanding debt for property deals now stands at £175bn, 11.2% of the total outstanding debt in the wider market.

The total debt outstanding for property increased by £8bn in the second quarter of 2007.

Commenting on the figures, Andrew Renshaw, head of valuation advisory at Jones Lang LaSalle said: 'The rise in lending reflects the increased turnover in the market. Over the first half of this year direct real estate investment in the UK reached a record £27.2 billion, a 6% increase on the same period last year.

'That said, over the next six months we anticipate greater caution in the market with the level of investment activity cooling slightly as the availability of credit reduces.'