Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Market reveals resilience in 2017
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- 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
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- 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
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- 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
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- Brexit uncertainties
- The facts
- The implications
- Decline of retail
- The facts
- The implications
The Market – What You Need to Know
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- 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
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- Methodology
- New lending remained stable in 2017
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- Figure 5: Value of New loans in the UK Commercial Mortgages market, £ billion, 2013-2017
- Total outstanding debt falls slightly
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- Figure 6: Value of outstanding loan books, £ billion, 2013-2017
Category Market Share
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- Non-banks continue to grow increasingly prominent in new lending
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- Figure 7: Value of New loans in UK Commercial Mortgages market, allocation by lender category, 2016 and 2017
- Outstanding debt remains stable
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- Figure 8: Debt allocation, by lender category, 2016 and 2017
- London dominates but the regions are expected to grow
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- Figure 9: Geographic distribution of loan books, % of total, 2017
- Offices remain the largest sector
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- Figure 10: Property type distribution of loan books, % of total, 2017
Market Segmentation
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- Growing divide between struggling retail and growing industrial and office sectors
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- Figure 11: Owner occupied and invested commercial property value, % of total, 2017
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- 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
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- 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
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- Commercial borrowing expected to maintain steady minor growth
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- Figure 14: Market forecast for commercial property capital value, 2013-2022
- Offices and industrial expected to maintain popularity, while retail will continue to struggle
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- 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
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- Interest rates
- Availability of credit
Market Trends
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- Commercial property investment recovered in 2017
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- Figure 16: Investment in UK commercial property, £ billion, 2013-2017
- Commercial lending rates rose in 2017 following 2016 dip
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- Figure 17: Average interest rate for UK MFI new advances to PNFCs, %, MAY 2016-April 2018
- Availability of credit remained largely stable in 2017
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- Figure 18: Availability of corporate credit to PNFCs in the last three months, net % balance, Q1 2012-Q1 2018
Market Drivers
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- Foreign Investment
- Shift among residential landlords to commercial investment
- Growing uptake among local authorities
Companies and Brands – What You Need to Know
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- Extensive restructuring of businesses
- Infrastructure decline in the past year
- Operators move online
Industry Structure
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- Changes in the structure of the industry
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- 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
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- 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
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- Figure 22: Analysis of the financial structure of the banks and building societies sector, 2016 and 2017
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- 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
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- Figure 25: Analysis of the employment structure of the banks and building societies sector, 2016 and 2017
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- 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
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- Barclays PLC
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- Figure 28: Financial analysis of Barclays PLC, 2013-2017
- HSBC
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- Figure 29: Financial analysis of HSBC, £ million, 2013-2017
- Lloyds Banking Group
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- Figure 30: Financial analysis of Lloyds Banking Group, £ million, 2013-2017
- Royal Bank of Scotland Group
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- Figure 31: Financial analysis of Royal Bank of Scotland Group, £ million, 2013-2017
- Santander UK Plc
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- Figure 32: Financial analysis of Santander UK Plc, £ million, 2013-2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
- Trade events
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