In this month’s roundup, we bring news of an increase in UK commercial property lending, calls for peer-to-peer investors to be granted more protection and new figures indicating a significant increase in enquiries about people who have died without making a will.
UK commercial property lending rises to post-2008 high
Commercial property lending in the UK has risen to levels not seen since 2008, the year of the global financial crisis. New research from De Montfort University has shown that insurance companies and private equity groups have played an important role in helping to raise the level of new lending against commercial property by one-fifth year on year.
According to the findings, £54 billion of new real estate debt was issued in 2015, which marked a 19% increase on the previous year. Notably, this figure was 80% greater than in 2013, when £29.9 billion of debt was issued.
Ion Fletcher, Director of Policy (Finance) at the British Property Federation, commented: “It will be interesting to see whether commercial real estate lending accelerates from here or grows in a more measured way.”
The report found that, in a notable difference to the market pre-2008, one-quarter of the new financing in 2015 came from non-bank lenders such as crowd funding.
Here at Blackstone Solicitors, we have a highly regarded commercial property team with retail clients, house builders and car dealerships to name but a few.
‘Better protection needed’ for peer-to-peer investors
Greater protection is required for investors in peer-to-peer loans, it has been claimed. Andrew Tyrie, Chairman of the Treasury Select Committee, has expressed concerns regarding the risks associated with these types of loan and has written to the chief executives of the Financial Conduct Authority and the Prudential Regulation Authority about his reservations, the Telegraph reports.
These types of loan are made when borrowers are matched with lenders online and rates higher than 4% are often offered. Mr Tyrie called into question the process of checking how creditworthy a borrower is and the accuracy of information regarding risks.
He commented: “Whether, and if so to what extent, investors would benefit from stronger consumer protection now needs careful thought. Poorly informed investors may be left with a false sense of security about the balance of risks versus returns.”
We act for the UK’s first crowd funding company that invest into property and therefore we have plenty of experience in peer to peer lending. Please contact Emma Nawaz on 0161 929 0121 if you would like to discuss this further.
‘Sharp increase’ in enquiries about dying without a will
Citizens Advice has revealed it has experienced a sharp increase in the number of enquiries it receives regarding people dying without a will. Speaking to BBC 5 Live Daily, the charity said this number has more than doubled in the past five years.
It was revealed that the charity received 3,747 such queries in 2015, which was markedly greater than the 1,522 received in 2011.
The warning came as a recent YouGov survey revealed almost two-thirds of adults in Britain do not have a will. The findings showed that just 38% of the public in England and Wales had a will in 2015.
If you need a will preparing or changing please contact Judith Chesters on 0161 929 0121 who would be delighted to assist you.
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