The Loan Market Association arranged a panel discussion on the current state of the UK real estate market on 22nd September. A mixed panel of financiers and advisers were upbeat about the real estate finance market post Brexit commenting on returning market confidence following an initial slow down which had begun months in advance of the Brexit referendum. Despite some withdrawal of real estate assets from the market initially, availability of funding at low rates has kept the market buoyant and there is still a strong interest, particularly in prime retail assets, across the country. The cut in the Bank of England base rate is also good news for borrowers and investors alike with the prospect of continuing low rates of borrowing and higher yields. It was noted that the general uncertainty around the terms of exit has forced developers to reassess which developments to focus on, but there is still good liquidity to be put to work in the UK real estate market.
After a slow summer our real estate finance team are seeing more deal flow going into the last quarter and the message from bank clients is that they are very much open for business.