The UK Commercial Property Lending Report
From 2018, The UK Commercial Real Estate (CRE) Lending Survey is based at Cass Business School, City, University of London. The Survey is a unique and comprehensive record of CRE lending, and an industry-standard source of information, regularly referenced in the national financial press and trade publications.
The Survey collects data directly from 80 banks, insurance lenders and debt funds twice each year. The Survey history runs back to 1997, when it was initiated by Bill Maxted. Up to 2017 the Survey results were published by De Montfort University as the UK Commercial Property Lending Report. It is now jointly published under the UK Commercial Real Estate Lending Report.
UK Commercial Real Estate Lending Reports
The reports are regularly referred to in the Financial Times, the business sections of other ‘broadsheet’ daily newspapers, property publications such as the Estates Gazette, EGCapital, Property Week, Capital Economics, Bloomberg and Reuters News Agency.
Non participants can purchase the research reports on the online webstore. The reports are of interest to solicitors, chartered surveyors, property companies, management consultants, tax advisors, the Inland Revenue, rating agencies, universities and lending organisations that do not participate in the surveys.
Full reports, published in April (giving results for the prior year-end) and October (mid-year) are the lead output from each Survey. Each report gives a detailed analysis of CRE lending, showing a larger total of the sector’s debt than recorded by the Bank of England, with analysis not available in any other source. They are a key point of reference for all those involved in real estate as borrowers, lenders, lawyers, consultants or researchers.
Topics covered by the CRE Lending Reports include:
- Trends since 1997 in the debt exposure of the real estate sector and the financial system – tracking for example the loan delinquencies and defaults through the last major cycle.
- Splits of outstanding and new loans by type and nationality of lenders, which show the shift from high street banks to non-bank lenders such as insurers and debt funds launched since the Global Financial Crisis.
- Breakdowns of lending between investment and development, and across regions of the country, highlighting points such as the recent growth in lending on private rented residential schemes.
- A detailed picture of current lending terms for senior, junior and mezzanine debt - loan to value ratios, interest rates and fees – across a range of property types and types of loan.
- Broader insights into the issues faced by real estate lenders and borrowers from the many face to face interviews conducted for each survey.
The full report contains 128 pages, 77 figures and 38 tables.
The report is also available in combination with the historic data set (excel) containing historic data from 2005 – 2017 and further break down and cross segmentation not available in the report.
Additional Services for Lending Survey Participants
For lenders who contribute data to the Survey we can provide further analysis in either standard or bespoke formats.
The Cass CRE Loan Benchmark Report can draw upon current data and historic records to provide a clear picture of individual company loan books against Survey and peer-group averages, for use in internal reporting, risk management and business analysis. A benchmark will show:
- Your loan book exposure and market share split by type of lending, sector and region against industry comparables, and how those structures have changed over time.
- Comparative lending terms, the income and loss performance of your loans against the rest of the market.
Bespoke data analysis and research covers a range of additional information, running from simple data requests for additional results on your own loan book or Survey averages to commissioned research reports on any company-specific or sector-wide lending issues, drawing on the skills of Cass’s specialists in real estate, banking and finance.
Events and news
- 26 April, 2018 - Year-end 2017 Cass CRE Lending Report presentation, A&O, 6pm (invitation only)
- 10 May, 2018 - IPF CRE Lending presentation, GVA, 3 Brindley Place, Birmingham B1 2JB
- 11 May, 2018 - IPF CRE Lending presentation, Freeths, Cumberland Court, 80 Mount Street, Nottingham NG1 6HH
- Executive Summary Results 2017
European Commercial Real Estate Lending
Cass Business School is co-operating with IREBS Regensburg on a pan-European project to increase transparency in real estate debt markets. The German debt lending report is published in June each year. Initiatives in other countries are under development.