Jones Lang LaSalle’s latest 2011 lending survey says greater liquidity in the UK lending market has failed to materialise.
City investment director Andrew Hawkins said: “A year ago we predicted greater liquidity than we are now experiencing and the outlook is challenging.”
The survey’s findings were:
- Refinancing will continue to account for 50% of banks’ activity in the next two years;
- Lenders are reluctant to take on risk; 68% of respondents are focused on prime deals.
Bank of England figures show property lending in Q4 2010 fell £16bn to £221bn, the largest fall since the series began in 1987.