Confidence solid among property loan firms

Confidence remains high among commercial property lenders despite political uncertainty, a new study indicates.

Nearly three quarters (72 per cent) of lenders expect to increase the number of new loans they originate in the next 12 months, compared to just 2 per cent who expect volumes to fall, according to the second edition of the market trend analysis report from Link Asset Services.

The financial administration specialist said that this confidence was being mirrored by recruitment plans, with more than half (53 per cent) of lenders planning to expand their team size.

Lenders see political risk as the greatest threat to the UK commercial property market during 2018 – being viewed by 70 per cent of respondents as their biggest concern. Of these, Brexit was most frequently mentioned, along with concerns over a potential change in government and general political worries.

James Wright of Link Asset said: “The story is one of lenders learning to live with political uncertainty.”