The latest De Montfort University report on bank lending to commercial property, if anything, only adds to the gloom hanging over the sector. What’s more, since it relates only to the first half of the year, its downbeat contents and message are likely to paint too rosy a picture of the lending market. The reported rise in the share of property loans in breach of financial covenant will surely be extended next year, raising the risk of forced sales and a second-round knock to capital values.
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