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Commercial sector finds easier funding

David Prosser
Monday 07 June 2010 00:00 BST
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The amount of money loaned to the commercial property sector rose by more than £700m in the first quarter of the year, its first quarterly increase for a year, according to figures released today.

NB Real Estate, a subsidiary of Capita, said lending was up by £727m over the three months to the end of March compared to the final quarter of last year. The data, based on Bank of England statistics, contrasts with other areas of the economy, where business lending has been falling.

Paul Watling, director of valuation at NB Real Estate, said the increases reflected increasing confidence in the property sector. "As capital values and rents have started to recover, so banks have shown a greater willingness to recommence lending to the commercial property sector," he said.

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