Only 12% of UK banks are willing to extend commercial property loans of over £100 mln. This is one of the conclusions of a survey-based analysis by Jones Lang LaSalle of the UK banking sector’s approach to commercial property lending between now and 2011. The survey indicates, however, that loan sizes are growing with 26% of respondents expect ing £100 mln+ deals to be available from their bank at the end of 2010 and 48% at the end of 2011.

German banks in particular are willing and able to provide lending for prime stock, believing there is a great opportunity to grow market share. Speculative development finance will be unavailable in the short term, the survey concluded, adding banks’ attitudes to risk are unlikely to change within the next 12 months.

Although banks that are lending are positive in their outlook, some respondents are disappointed by activity levels due to the lack of quality stock available to lend against,
Jeremy Handley, director in Jones Lang LaSalle’s Valuation Advisory team said: 'As the debt markets free up and the real estate investment market also improves, debt providers are more prepared to lend, albeit only on the properties they are comfortable with. What we have now is dramatically different to the situation we had at the beginning of the year, and lenders are now finding they have more money to lend than the market can absorb. The key issue for both lenders and investors are the same - availability of suitable stock.'