Public private partnerships boost property

THE BANKS’ retreat from UK property lending has made institutional investors and public-private partnerships vital to the recovery of the sector, the head of Legal & General Property said yesterday.

Speaking at an event at MIPIM, the property industry’s annual conference in France, Bill Hughes, said that “a sea change” was taking place in the ownership structure of property as a result, with pension, life and insurance funds as well as public-private partnerships stepping to in to fill the void in lending.

With banks struggling with an estimated £285bn of commercial property debt, only five per cent of the £11.3bn of new lending to the property industry last year went to commercial development, said Hughes.