Banks still keen to lend to UK commercial real estate

A divergence between banks’ expectations for house and commercial real estate prices may explain why they are still keen to ramp up lending to commercial real estate even as the availability of credit to the overall corporate sector has flatlined. In any event, that implies banks will continue to be willing to raise the share of such loans on their books, which has now reached an 11-year high, and that should prevent a rise in forced commercial sales over the next year.