According to figures released at the end of last week by the Bank of England, bank lending in sterling to real estate grew again in the third quarter of 2007, by £10.5 bn (EUR 15.1 bn). Outstanding loans to the UK real estate sector now total £186 bn (EUR 268 bn), the highest figure ever recorded as a proportion of total lending. Commenting on the figures this week, Jones Lang LaSalle (JLL) note that these record numbers partly reflect the strong levels of investment activity in July, prior to the credit crunch. JLL point out, however, that total investment volumes in the UK have fallen significantly in the aftermath of the crunch, especially with respect to large deals involving central London offices and shopping centres.
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