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American Banks Are Cutting New U.K. Property Lending

  • Lenders from North America advanced 58 percent less credit
  • Cost of borrowing for commercial property rose in first half
Photographer: Simon Dawson/Bloomberg

The cost of borrowing to buy U.K. commercial property is rising and the amount of credit that lenders, particularly from North America, are willing to advance is falling as concerns about property values grow, according to a survey of 78 lenders by De Montfort University.

Lenders have grown more cautious about advancing credit as prices remain near record highs even after Britain voted to leave the European Union, the poll shows. Potential interest rate rises, Brexit and market fundamentals all worry banks from North America, according to the survey.