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BoE real estate lending figures are concerning, says Aldermore

POSTED: 22nd April 2014
IN: Newsroom
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Commenting on the Bank of England’s Trends in Lending Report Q1 2014 released today, Rob Lankey, Managing Director, Commercial Mortgages, Aldermore says:

“It is concerning to note that lending to the real estate sector is down over 8% at a time when we need to ramp up building urgently, to avoid exacerbating the discrepancy between supply and demand.  

“Housebuilders and developers are chomping at the bit to increase their building pipelines but they are being constrained by a lack of capital. Many banks are wary of lending to housebuilders, especially those outside of London and the south east, which is only fuelling the imbalance between the capital and the rest of the country.

“Even if housebuilders increased production from their current output to pre-recession levels, we would still have a big shortfall, estimated at 100,000 a year.

“It is vital that Government, regulators and lenders work together to increase lending to this important sector. We need to get Britain building to stave off the dangers of a housing bubble forming due to lack of supply.”

**ENDS**

For further information journalists can contact:

Nicola York

Nicola.york@cicero-group.com

Office: 0207 297 5965

Mobile: 07841 864 107

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