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COMMERCIAL MORTGAGES - UK - JULY 2018

Published By :

Mintel

Published Date : Jul 2018

Category :

Industry Profile

No. of Pages : N/A

Commercial borrowing levels recovered in 2017, bolstered by a strong second half of the year, as the market displayed resilience a year on from the lull that followed the EU referendum. This growth came as a surprise to many in the industry given the climate of uncertainty, with fears that heightened caution could subdue major financial commitments for a number of years.

Table of contents
OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Market reveals resilience in 2017
Figure 1: Value of New loans in the UK Commercial Mortgage market, £ billion, 2013-2017
Growth underpinned by office and industrial sectors, while retail continues to struggle
Figure 2: Owner occupied and invested commercial property value, % of total, 2013-2017
Commercial property borrowing expected to maintain resilience
Non-bank lenders continue to grow in prominence
Figure 3: New loans value allocation by lender category, 2016 and 2017
Companies and brands
Extensive restructuring of businesses
What we think
ISSUES AND INSIGHTS
Brexit uncertainties
The facts
The implications
Decline of retail
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Market recovers in 2017
Growing divide between struggling retail and growing industrial and office sectors
Non-bank lenders continue to consolidate
Commercial property investment recover strongly in 2017
Commercial property borrowing outlook remains cautiously optimistic
MARKET SIZE
Methodology
New lending remained stable in 2017
Figure 5: Value of New loans in the UK Commercial Mortgages market, £ billion, 2013-2017
Total outstanding debt falls slightly
Figure 6: Value of outstanding loan books, £ billion, 2013-2017
CATEGORY MARKET SHARE
Non-banks continue to grow increasingly prominent in new lending
Figure 7: Value of New loans in UK Commercial Mortgages market, allocation by lender category, 2016 and 2017
Outstanding debt remains stable
Figure 8: Debt allocation, by lender category, 2016 and 2017
London dominates but the regions are expected to grow
Figure 9: Geographic distribution of loan books, % of total, 2017
Offices remain the largest sector
Figure 10: Property type distribution of loan books, % of total, 2017
MARKET SEGMENTATION
Growing divide between struggling retail and growing industrial and office sectors
Figure 11: Owner occupied and invested commercial property value, % of total, 2017
Figure 12: Owner occupied and invested commercial property value, % of total, 2013-2017
Falling need for retail property
London continues to dominate offices sector despite increased uptake in the regions
Figure 13: Value of office property, by region, 2017
Industrial demand strongest performer of 2017
Growth in leisure and student housing drive growth in other commercial
MARKET FORECAST
Commercial borrowing expected to maintain steady minor growth
Figure 14: Market forecast for commercial property capital value, 2013-2022
Offices and industrial expected to maintain popularity, while retail will continue to struggle
Figure 15: Forecasted segmentation of the UK Commercial Property market, 2018-2022
Interest rate growth
Boosted interest in the regions
THE IMPACT OF THE ECONOMY
Interest rates
Availability of credit
MARKET TRENDS
Commercial property investment recovered in 2017
Figure 16: Investment in UK commercial property, £ billion, 2013-2017
Commercial lending rates rose in 2017 following 2016 dip
Figure 17: Average interest rate for UK MFI new advances to PNFCs, %, MAY 2016-April 2018
Availability of credit remained largely stable in 2017
Figure 18: Availability of corporate credit to PNFCs in the last three months, net % balance, Q1 2012-Q1 2018
MARKET DRIVERS
Foreign Investment
Shift among residential landlords to commercial investment
Growing uptake among local authorities
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Extensive restructuring of businesses
Infrastructure decline in the past year
Operators move online
INDUSTRY STRUCTURE
Changes in the structure of the industry
Figure 19: Analysis of the changes in the structure of the banks and building societies sector, number of outlets and businesses, 2013-2017
Figure 20: Analysis of the changes in the structure of the financial leasing sector, number of outlets and businesses, 2013-2017
Figure 21: Analysis of the changes in the structure of the other credit granting sector, number of outlets and businesses, 2013-2017
Structure by turnover
Figure 22: Analysis of the financial structure of the banks and building societies sector, 2016 and 2017
Figure 23: Analysis of the financial structure of financial leasing sector, 2016 and 2017
Figure 24: Analysis of the financial structure of other credit granting sector, 2016 and 2017
Structure by employment
Figure 25: Analysis of the employment structure of the banks and building societies sector, 2016 and 2017
Figure 26: Analysis of the employment structure of the financial leasing sector, 2016 and 2017
Figure 27: Analysis of the employment structure of the other credit granting sector, 2016 and 2017
COMPANY PROFILES
Barclays PLC
Figure 28: Financial analysis of Barclays PLC, 2013-2017
HSBC
Figure 29: Financial analysis of HSBC, £ million, 2013-2017
Lloyds Banking Group
Figure 30: Financial analysis of Lloyds Banking Group, £ million, 2013-2017
Royal Bank of Scotland Group
Figure 31: Financial analysis of Royal Bank of Scotland Group, £ million, 2013-2017
Santander UK Plc
Figure 32: Financial analysis of Santander UK Plc, £ million, 2013-2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Methodology
FURTHER SOURCES AND CONTACTS
Trade associations
Trade magazines
Trade events

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