Banks are only selectively lending to the property industry but are doing “proper business”, Allied London chief executive Mike Ingall has claimed.
Speaking at Estates Gazette’s North West Question Time event in Greater Manchester last Friday, panellist Ingall said that banks’ lending had returned to the levels seen at the beginning of last decade, meaning that speculative development in Manchester is likely to be five years away.
“The market from 2004 to 2008 was an absolute bubble, with the value of assets based on very cheap debt. All that the banks have done is to ask people to repay their loans,” Ingall said.
Ingall was joined on the panel, which was chaired by EG editor Damian Wild, by Sir Richard Leese, leader of Manchester city council, Derek Bald, regional director of Santander, Peter Copley, property director for ITV and Patrick Joynson, head of Savills’ Manchester office.
Santander’s Bald insisted that the bank is open for business and that debt is available at a loan-to-value ratio of up to 65%: “We don’t see a huge amount of competition out there and we are selective about where we put our money,” he said.
Responding to a question from the audience, council leader Leese argued that the Greater Manchester region would not benefit from having a single elected mayor. “We have achieved a lot through building a consensus in Greater Manchester. If we were to start imposing structures it would undo all the co-operative work of the last 25 years,” he said.
The panel also discussed whether the disparate boroughs of Greater Manchester should unite under the banner of Manchester. ITV’s Copley admitted that despite the broadcaster preparing to move to Salford Quays, ITV will remain part of the Manchester brand.
Asked whether London is another country as far as regional cities like Manchester are concerned, Savills’ Joynson said: “A strong London is good for the UK, but it is another country – it is a global city.”
Download the full podcast recording from Estates Gazette’s North West Question Time here, or visit Estates Gazette’s iTunes channel.
daniel.cunningham@estatesgazette.com
