Major property lenders are still confident about the property sector, despite the events of 11 September.
Agent Nelson Bakewell’s annual survey on property lending had been carried out before 11 September, so the group decided to offer respondents a chance to amend responses.
David Wood, head of Nelson Bakewell’s valuation division, said, however, that attitudes to lending had not significantly changed.
Wood said: “The only difference between the first and second survey was the number of lenders who believe that interest rates will now stay below 5% for the coming year.”
The survey found that 78% of lenders had increased their loans to property over the past year, but that the percentage who expected the trend to continue had decreased year-on-year from 84% to 72%.
Wood said that lenders reported more caution in the type of lending taken on.
The survey concluded: “There is still healthy competition among lenders. Loan-to-value ratios have been increasing and the number of respondents who would consider positions with over 90% LTV has doubled.”
