UK banks 'more willing to lend for property developments'

5 October 2012

British banks have become more prepared to lend money for real estate developments over the course of the last 12 months, a new study has revealed.

Research published today (5 October) by construction consultant EC Harris has established that financiers are now willing to boost fluidity in the housing market due to increasing confidence that the UK economy is recovering, Bloomberg reports.

More than half of all banks based in Britain (66 per cent) indicated that they are likely to provide funds for construction projects in the coming five years - a rise of around 15 per cent on the figure posted at the corresponding period in 2011.

By comparison, the proportion of financiers in mainland Europe likely to lend to such developments by 2017 has slipped by seven per cent to 48 per cent due to worries regarding the ongoing eurozone debt crisis.

Furthermore, the majority of European banks are not willing to lend without a tenant commitment to lease at least some of a proposed development.

By Asim Shah

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