Pictured above: Lambert Smith Hampton's Ian Kibble

The head of the Birmingham office of national commercial property firm Lambert Smith Hampton (LSH) has welcomed new research which suggests that lenders in the Midlands intend to make more finance available for commercial property development.

But Ian Kibble, regional director for LSH, warned that activity was coming from an extremely low base and there was a great deal of ground to make up if high quality property shortages were to be avoided.

Commenting on research by accountancy firm PwC which reveals that more than a third of lenders planned to release finance for property development, he said, "This research is the first positive sign for some time that banks and other lenders are prepared to finance new commercial property development. That is to be welcomed, particularly as it contrasts with noises being made by some banks to the effect that the days of lending for speculative development could be over."

He said, "However, the same research shows that nearly 20 per cent of lenders had no intention of increasing exposure to commercial property, and it's also important to remember that activity levels are currently extremely low and we are facing short and medium term shortages in Grade A office space and high quality commercial and industrial space.

"There are some signs of improvement, and the activity of Local Enterprise Partnerships combined with the promise of Enterprise Zones will improve things further. However for many developers and investors funding continues to be an issue and other funding options need to be considered," he said.

He added, "In a climate of high inflation and limited returns many are recognising the sustainable income benefits of commercial property and pension funds are becoming increasingly enthusiastic about the sector. Investment managers are developing strategies to take advantage of the shortage of bank lending and have launched non-listed funds to provide loans. We would encourage people to speak to us about their funding requirements and we will find the best route available." 

For more information about Lambert Smith Hampton, please visit their website here: www.lsh.co.uk