Market Insight

Lending surge means ‘never better’ for commercial property investment

October 18, 2016

A spike in commercial mortgage lending over the past 12 months means commercial property investment has never seen a better time, according to the NACFB.

The National Association of Commercial Finance Brokers has published figures showing commercial mortgage lending up by nearly 55% year-on-year to £5.34 billion in the 12 months to the end of June.

Commercial buy-to-let lending is up by nearly 40% at nearly £5 billion for the year too, while general business development finance is up just under 50% at £1.8 billion.

Adam Tyler, chief executive of the NACFB, said: “It’s been a phenomenal and record breaking year across the commercial finance sector.

“There has never been a better time for businesses to secure finance, as the commercial finance sector continues to innovate and diversify.”

While that may mean arranging finance in order to fund commercial property investment of your own, the trends don’t just mean it is a good time for buying commercial property.

The equivalent rise in commercial buy-to-let lending may also mean there is more availability of commercial property to rent in your area, with development loans to fund the costs of moving and expansion until you see a rise in profits.

Of course, with greater availability of lending for commercial property investment, that also makes it a good time for selling commercial property, as there should be more buyers with the funds available to pay the full asking price.

And for those businesses who are hit by commercial rent reviews, a greater availability of commercial property to rent might allow for more negotiation on commercial lease renewals – as if you cannot realistically afford your present rent, it should now be easier to move to new, more affordable premises.

For all of these reasons and more, the rise in lending is good news for commercial property investment in general, making it the perfect time to look at all of the options and maximise your return on investment.