UK lenders seen more cautious after Brexit vote: survey

Bengaluru

UK housebuilders, particularly those operating in central London, are finding lenders are giving out less finance for new projects since Britain's vote to leave the European Union, according to a report by property consultant Knight Frank.

Heightened caution among lenders is causing many to scrutinise deals for longer and reduce the amount of their lending by 5-10 per cent of the project cost, Peter Macallan, head of structured development finance at property consultant Knight Frank told Reuters. "So what that means is that effectively developers are having to put more cash equity into the deals upfront, giving lenders a bit more comfort in an uncertain market with 'Brexit', the US election and what demand for UK housing stock is going to look like in 3-5 years," Mr Macallan said.