Interest rates

The UK specialist lender is aiming to lend £1bn by 2024, with the support of a new funding line from NatWest Markets.

Debt providers hope new UK premier Liz Truss’s plan to tackle energy price hikes protects occupiers. 

During the era of ultra-low rates, real estate borrowers spent little time worrying about hedging. Now, mitigating interest rate risk requires more consideration – and higher costs.

Inflation and interest rates look set rise and recession looms, but some lenders see higher loan pricing and less competition as an opportunity.

Higher lending margins were seen in many prime office markets.

The survey shows widespread, albeit measured, pessimism around commercial real estate in the coming year.

The bank’s sentiment survey revealed its private clients tip residential for sale and for rent to exceed expectations.

Panellists at REC Europe’s London event said inflation and rising rates are prompting greater scrutiny of potential financing deals.

Senior industry executives are taking a very granular approach to valuing investments a time when market conditions are ‘very, very hard to read’.

With the war in Ukraine fuelling inflation and interest rates on the rise, real estate debt market participants are bracing for volatility.