Commercial net lending improves
In the property market figures are less glowing, as £734m more was paid back by borrowers than the banks lent.
Kelvin Davidson, property economist, who penned the report, said the figures were deceptive however, as banks are selling off existing portfolios to investors, who then do not show up on the data.
He stressed that “the outlook has improved” and was positive regarding this demand for commercial property.
At 8.7%, commercial property’s share of total outstanding debt is back at 2003 levels.
It is expected that increased gross lending should spell a return to positive net lending volumes.