EXPO REAL 2016: The Brexit vote has not stopped banks from lending to the UK, according to Cushman & Wakefield’s European Lending Trends report.
In a study of 50 major lenders from across Europe, 95% said that fallout from the June referendum will not stop their lending in the UK.
Activity across Europe is expected to rise with 80% of lenders saying loan origination will either stay the same or rise in the coming six months. The number rose to more than 90% for refinancing.
Edward Daubeney, director of EMEA structured finance at Cushman & Wakefield, said: “Our survey shows that the Brexit vote is having little impact on market sentiment from a lending perspective and the fundamentals remain encouraging.
“The trend towards lending by geography has also not changed significantly over the past six months, albeit the UK’s share has softened marginally in the wake of the vote result.”
The study also showed that LTVs have fallen to below 60% in every European market, which, it said, implied that the industry is not repeating the trends seen before the financial crisis.
However, it noted that debt funds are still willing to take on higher risks, lending at 70-80% LTVs.
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