They have found that although banks that are lending are positive in their outlook, some respondents are disappointed by activity levels due to the lack of quality stock available to lend against.
There is a range in the amount lenders can lend. The majority of banks (35%) are prepared to lend between £25m and £50m with 30% prepared to lend between £50-£100m.
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Currently 16% are prepared to lend £10 - 25m and 12% over £100m. Loan terms are typically 3-5 years, with almost 50% of lenders offering a five year term.
Loan sizes are growing and 26% of respondents expect £100m+ deals to be available from their bank at the end of 2010 and 48% at the end of 2011.
Jeremy Handley, director in Jones Lang LaSalle’s Valuation Advisory team said: "As the debt markets free up and the real estate investment market also improves, debt providers are more prepared to lend, albeit only on the properties they are comfortable with.
"What we have now is dramatically different to the situation we had at the beginning of last year, and lenders are now finding they have more money to lend than the market can absorb. The key issue for both lenders and investors are the same – availability of suitable stock."
(GK/BMcC)
