Debt Funds Close in on Banks as Biggest UK Real Estate Lenders

Debt funds have doubled their share of the UK real estate lending market over the last five years as banks, constrained by post-crisis regulations, have lost ground in the direct lending market.

These lenders increased their share of the real estate debt market to 31% last year, up from 15% in 2020, according to data published by the Bayes Business School Thursday. Together with insurance companies, these alternative lenders now hold 45% of all outstanding commercial real estate loans in the UK.