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LATEST NEWS & EVENTS Lenders 'increasingly prepared to issue commercial property loans'  Financial service providers in the UK are increasingly providing funding to those keen to invest in commercial property, a new report suggests. According to Savills, lending to the sector has risen over the last year, with more banks providing additional debt for investment and development. For example, the Royal Bank of Scotland and Lloyds Banking both told the firm that they are prepared to commit to debt packages exceeding £30 million. Head of valuations at Savills William Newsom said: "I am pleasantly surprised by the number of lenders who are prepared to provide development." He noted that the economic downturn has seen markets close and reopen again within two years, whereas in the late 1990s, the development finance markets were closed for half a dozen years. Among the banks offering finance worth over £30 million are Aviva, Aareal Bank, Deutsche Bank and Santander. Recently, Investec Private Bank found that over nine in ten real estate investors in Britain intended to maintain or raise their allocation to commercial property this year. Commercial property partner at Lamport Bassitt John Newton said: "Although it is heartening to see the lenders expressing interest in larger scale lending, the evidence remains that smaller debt packages remain difficult to secure for most small to medium businesses. "Many banks are continuing to exert downward pressure on the level of lending to individual businesses. "Those who seek loans are faced with a number of challenges, including conservative valuations, reductions in loan-to-value ratios, substantial arrangement fees, requirements for guarantees and other onerous conditions. "While parts of the commercial property market have been exceptionally active in the first quarter, this seems to us to be in spite of, rather than as a consequence, of increased levels of property lending." 
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