Carillion collapse leads to drop in lending to commercial property sector
PUBLISHED: 08:49 16 April 2018 | UPDATED: 08:49 16 April 2018
The collapse of engineering giant Carillion contributed to a 4% fall in lending to the commercial property sector in January, a study has found.
The amount slumped to £4.10bn from £4.24bn in December, said property lending platform Lendy.
The construction sector usually sees an increase in lending and investment between December and January as new commercial building projects begin for the new year, said the report.
Lendy said the collapse of Carillion, the biggest construction and outsourcing firm in the UK, created nervousness amongst many mainstream lenders over the construction sector.
Liam Brooke, co-founder of Lendy, said: “The unexpected fall in lending highlights just how big an impact Carillion has had on the commercial property industry.
“Lenders who have had to deal with heavy losses following Carillion’s collapse may think twice before giving loans for some future commercial real estate projects.”