According to the Bank of England (BoE), the net increase in the stock of loans on banks’ balance sheets secured against commercial property was £9bn in Q1. That was the second highest quarterly total of the last 21 years and pushed the sector’s share of total bank lending to a record high of 11.6%. The continued strength in the property lending data is hard to square with the credit crunch and, in particular, the slump in capital values. (See Chart 1.) Why have lending data not softened?
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