Lloyds Banking Group’s gross lending on real estate was £19.4bn at the end of June 2017, down from £19.9bn at the end of December 2016.
In a stock market announcement for its half-year results, it said core commercial banking lending was £18.1bn, while £500m was booked within the Islands Commercial business and £200m within retail business banking.
The bank’s commercial real estate business focuses on UK commercial property clients ranging in size from medium-sized private real estate entities up to publicly listed property companies.
Lloyds said that despite political uncertainty and the potential impact of withdrawal from the EU, the market for UK real estate remained resilient, with demand coming from a range of investors.
UK real estate offered attractive yields compared to other asset classes, while the fall in sterling had boosted the sector’s attractiveness to foreign investors, the bank said.
However, Lloyds did say that it recognised that property was a cyclical sector, and that it had put in place appropriate caps to control exposure.
It added that business propositions continued to be written in line with strong quality of income and proven management teams.
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