The number of commercial property loans in default has soared 400% in just 12 months, according to a report due to be published today, The Telegraph reports.
The study of bank lending to the commercial property industry shows that while the amount lent continued to rise in 2007, nearly 400 loans slipped into default, up from fewer than 80 in 2006. Although the combined value of the loans - at £250m - is relatively small, it suggests that a growing number of smaller property investors and developers are failing due to the current financial crisis. NATIONWIDE BUILDING SOCIETY, Britain’s second largest mortgage provider, will scale back lending for a second consecutive year if the wholesale markets do not come back to life in the next few months...
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