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The Bank of England’s concern about ‘stretched’ commercial property values serves as a reminder for real estate lenders to remain vigilant.
UK banks are in much better shape to withstand a property crash than they were in 2007-2008 according to the latest Bank of England stress tests. UK banks would suffer impairment rates on their real estate loan books of about half those experienced in the financial crisis, and impairment charges of under a third as […]
The five-year sterling swap, the benchmark for many UK commercial real estate property loans, has risen steadily in the last three weeks, pushing up costs for borrowers. According to hedging specialist JC Rathbone Associates, the five-year swap was only 0.46 percent on 27 September but had risen to 0.75 percent yesterday (17 October). The climb […]
The UK’s seven most important banks and building societies have completed their latest round of stress tests and submitted their results to the Bank of England.
Ongoing regulatory changes are likely to create further opportunities for unregulated capital Spring is here, and with it, a more upbeat assessment of the prospects for real estate than the Sturm und Drang that prevailed at the start of 2016. But in the post-financial crisis world, it is a regulator’s job to be gloomy. Investors […]
The governor of the Bank of England singled out equity rather than debt as the main factor driving up real estate values in a key speech earlier this week.
Neil Crosby, of Reading University, is advising the Bank of England on methods for calculating long-term sustainable value for use in UK lending.
The Bank of England has given its backing to the UK property finance industry’s proposal to build a commercial real estate (CRE) loans database. In a speech to the City of London Property Investor’s Banquet last night, Alex Brazier, executive director for financial stability at the Bank of England, said over-gearing in the real estate sector had been a major driver of instability.
The Bank of England should not raise interest rates just yet and should maintain its quantitative easing (QE) programme to encourage bank lending, an audience at Real Estate Capital’s Europe Forum 2015 heard this morning. In his keynote address to more than 130 real estate finance professionals, Dr Gerard Lyons, chief economic advisor to London City Hall, said the risks to the UK economy of raising interest rates outweighed maintaining the status quo.
The Bank of England says it supports lower capital requirements for investors in high quality securitisations.

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