Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Property»Savills reveals diverse range of lenders looking to deploy debt capital into UK property
    Property

    Savills reveals diverse range of lenders looking to deploy debt capital into UK property

    June 12, 20254 Mins Read


    Savills reveals diverse range of lenders looking to deploy debt capital into UK property

    The lending market remains very active with lenders from 47 countries seeking to deploy debt capital into UK property, the largest number in terms of geographical diversity on record, Savills revealed at its annual Financing Property presentation in Edinburgh this week.

    The variety of lender activity in the UK property market suggests investor requirements across broad debt requirements and risk appetite can be fulfilled.

    According to the Savills survey, while respondents were more likely to lend and invest in the living sectors, residential development and prime logistics, the offices, retail and secondary logistics sectors all reported an improvement in lending sentiment compared to last year.



    Craig Timney, Savills head of UK valuation operations, said: “The lending market remains highly diverse with lenders from 47 countries worldwide looking to deploy debt capital against UK property – this is the most geographically spread we have seen. Many lenders seem reassured by the fact that the UK is further along in its repricing cycle compared to Europe. Some prime sectors are even experiencing a rise in values.

    “However, pricing uncertainty persists in certain areas, which may be dampening transaction volumes. This, in turn, is causing frustration among lenders due to the limited lending opportunities for new acquisitions.”

    According to Bayes, just over £36 billion of loans were deployed in the UK in 2024, which was up on 2023 levels. Only 31% of that amount related to new acquisitions, which highlights the volume of refinancing activity that is ongoing.

    Additionally, the use of Back Leverage (debt funds borrowing money from third party lenders) is becoming a notable feature coming through in lending activity.



    Graeme Fraser, head of valuation, Scotland, added: “Most lending activity has naturally centred around refinancing, a fair volume of which is from incumbent lenders seeking to amend and extend existing loan agreements whilst working collaboratively with their borrowers. However, some borrowers may face difficulties bridging funding gaps when existing loans mature given the higher funding costs relative to those agreed under the original loan term.

    “With instances of over 30 lenders often vying for the same deal, this intense competition is putting downward pressure on both margins and, in some cases, loan-to-value ratios which can lead to favourable outcomes for borrowers. However, for those lenders who miss out, it raises the question of whether we’ll start to see lenders move up the risk curve in pursuit of future opportunities.”

    Addressing the commercial property market, Mat Oakley, head of commercial research at Savills, notes that while UK commercial investment activity in Q1 2025 was subdued it wasn’t the only country to experience a slowdown with most other major European countries also reporting Q1 investment activity below the five year average. Additionally, global M&A activity reached its lowest point on record in April, suggesting investor capital is not being re-deployed in other areas.

    He commented: “The occupational story in the UK remains solid and rental growth continues, driven by the lack of development. As the noise around tariffs diminishes we should see a boost in investment volumes supported by the resilient occupational story, more debt availability, higher LTVs and some distress. Additionally, the returns could prove too attractive to ignore for some investors with UK Retail and UK Industrial sitting in the top quartile compared to other asset classes, returning over 10% in the year to the end of Q1 2025.”



    From a residential perspective, Savills highlights that whilst transactional activity south of the border was impacted by changes to Stamp Duty thresholds, there were no such changes to LBTT in Scotland, where the number of agreed sales so far this year has exceeded 2024 levels. Price bands more exposed to mortgage lending outperformed due to stability in rates. Meanwhile, Scotland’s new build market remains cautiously optimistic. However, the introduction of NPF4 and rising build costs are having a significant impact on the delivery of housing and site viability, particularly for smaller developers.

    According to the Savills European Investor Survey, PBSA and multifamily living continue to be the most in demand sectors for UK-wide investment.

    Faisal Choudhry, director in Savills Scottish residential research team, concluded: “We are seeing improving affordability in the UK housing market, which should help drive activity and pricing, despite economic uncertainty. However, there are still pockets of the market facing weakness amid continued mismatch in pricing expectations and policy changes which has impacted prime markets. Whilst investor demand for UK-wide PBSA and multifamily living provides cause for optimism, there remains a cloud of uncertainty on possible rent controls in Scotland, with a consultation currently underway on whether to exempt certain types of properties, including the emerging Build to Rent sector.”




    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Morrisons head of property steps down

    Property

    UK property sales rise in June, offering boost to Chancellor Rachel Reeves

    Property

    HMRC data – Mortgage Strategy

    Property

    Morrisons’ head of property steps down

    Property

    RICS report: Occupier demand for commercial property in NI has ‘strongest jump for three years’

    Property

    UK property insurers paid £1.6bn in claims during Q2 driven by adverse weather: ABI

    Property
    Leave A Reply Cancel Reply

    Top Picks
    Cryptocurrency

    How FOMC’s Rate Cut Hype Could Trigger a Rally in These 3 Cryptos

    Commodities

    des initiations de soudure proposées l’après-midi

    Commodities

    Brazilian ethanol to seize market share from gasoline in 2024: Commodity Insights analyst

    Editors Picks

    INDOEX Exchange Under Fire for Alleged Unauthorized Sale of User Assets

    April 23, 2025

    Woman suspected of stealing $800K in ‘Trump coin’ cryptocurrency from Miami ex

    February 20, 2025

    les cat’ bonds deviennent incontournables

    September 5, 2018

    Real Madrid : Surprise, un plan B à 60 millions s’active en coulisses !

    May 9, 2025
    What's Hot

    Bitcoin, other cryptocurrencies retreat as Trump’s speech is silent on digital assets 

    January 21, 2025

    In a win for Trump, US House passes three landmark cryptocurrency bills – Firstpost

    July 17, 2025

    Economists warn against Trump plans for a federal crypto stockpile

    March 4, 2025
    Our Picks

    Taiwan adds China’s Huawei, SMIC to export control list

    June 15, 2025

    USDA Celebrates $3 Billion for Climate-Smart Commodities

    October 17, 2024

    à la place du gazole, du XTL produit à partir de déchets en plastique

    March 15, 2025
    Weekly Top

    Morrisons head of property steps down

    July 31, 2025

    Trump appoints new group to promote digital finance

    July 31, 2025

    Act fast, avoid pitfalls: Winning property tactics

    July 31, 2025
    Editor's Pick

    Orion Portfolio Solutions LLC Boosts Stock Position in Marvell Technology, Inc. (NASDAQ:MRVL)

    July 21, 2024

    Nifty 50 to Sensex: Indian stock market pares losses caused by Trump’s tariffs. What lies ahead?

    April 15, 2025

    Zen Tech International finalise l’acquisition de 70% d’Alpha Fintech Sdn. Bhd.

    June 16, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.