The state of the UK's commercial real estate debt market

Take a dual approach

The world’s major lenders into commercial real estate are being forced to reconsider their exposure to risk as a result of the fast-moving geopolitical landscape.

Our emergence from a global pandemic, coupled with the war in Ukraine, as well as socioeconomic and political upheaval in the UK, is creating an environment that borrowers are finding challenging due to the steep increase in global interest rates. Earlier this month, inflation hit a multi-year high of 10.1% and predictions are that this could reach 18% before long. Consumers are paying the price for higher wages and material costs in the current cost-push inflationary environment and, while global monetary policy is attempting to control inflation, commercial and consumer borrowers are b...