With much chat at MIPIM focused on financing issues, this week’s Estates Gazette Big Question was all about property debt.
The survey asked more than 300 property professionals how hard it was to get bank finance compared with six months ago and a year ago. In both cases, respondents said they were finding it even more difficult.
“Regulatory requirements are becoming tougher on banks, placing a greater need to degear their balance sheets and sort out legacy loans,” said Rob Dawson, head of the property finance unit at the Co-operative Bank. “As a consequence, I have sensed all banks concentrating hard on their existing portfolios with limited focus on new opportunities.”
“As the economy undoubtedly recovers, so banks appear to be tightening their policies on lending! This is characteristically short-sighted and counterintuitive,” added another respondent.
Some 83% of respondents also reported that debt was becoming more expensive.
“There are now fewer employees in banks with any serious property knowledge,” said Jeremy Philp, director of Dunsfold Developments.
