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LATEST NEWS & EVENTS Commercial property lending 'unlikely to surge this year'  It is unlikely that the UK will see a significant rise in commercial property lending this year, it has been suggested. According to Kelvin Davidson, property economist at Capital Economics, many financial institutions still wish to reduce the amount of funding they provide to the sector. He added that the market has "reasons to be cautious" and there are dangers in relying on finance from foreign lenders. The expert commented: "If you are reliant on overseas lenders, there has surely got to be a risk that you are more vulnerable to losing that finance more quickly than if it was domestic lenders." Mr Davidson's remarks follow the release of research from Savills, which suggested that of the 21 organisations willing to loan finance, 50 per cent are German-based. It was also found that many lenders polled for the study are willing to provide in excess of £30 million for commercial property deals. Commercial property partner at Lamport Bassitt John Newton commented: "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." 
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