Bayes Business School hosts one of the most renowned UK real estate debt market research projects. The unique research into real estate debt markets is based on the data submissions from over 70 lending institutions in the UK.
Data Alliance with lenders
Data is collected from participating lenders in a standardised data template. The granular loan information broadly includes data fields on:
Data variables:
| total outstanding loan amount, maturity profile | interest margin, type of interest |
| property type & region | loan-to-value ratio (LTV) & debt-service coverage (DSC) |
| defaults & losses | secondary market trading - syndications |
Participating lenders receive the full analysis & results in return for their data submission
Why should lenders participate?
- Individual reporting, performance comparison and asset allocation, benchmarking and portfolio analysis tool for lenders’ CRE exposure.
- The collection and analysis of data would follow best practice to provide: reliable figures for key underwriting metrics such as Probability of Default, Loss Given Default, accounting for both loan cash flows and balance sheet adjustments through marked-to-market values and credit provisions.
- Internal loan mark-to-market model inputs and verification, supporting impairment models and discussions with regulator – independent third-party standard
Who else is it for?
| Banks – loan benchmarking, mark-to-market | Consultants, debt advisors |
| Portfolio managers, debt fund managers and investors | Rating agencies & regulators |
| Capital allocators | Tax advisors |
What is included:
the project provides timely updates on the UK lending market in a comprehensive report which is published in April (31st December), and October (30 June) each year. It contains insights of the development of the UK CRE debt market going back to 1997.
The research reports are a key point of reference for all those involved in real estate as borrowers, lenders, lawyers, consultants or researchers.
- CRE debt market cycle since 1997 and the financial system – tracking for example the loan delinquencies and defaults through the last major cycle.
- Total annual CRE lending volumes, active lenders, loan sizes, development finance, investment finance.
- UK lenders’ loan books across regions and property sectors, highlighting points such as the recent growth in lending on private rented residential schemes.
- A detailed picture of current lending terms for senior, junior and debt - loan to value ratios, interest rates and fees – across a range of property types and types of loan.
- Specifically, tracks fixed/variable-rate, fixed-term senior & junior loans that are made by and held in the investment portfolios (“on balance sheet”) of institutional lenders such as life insurance companies and pension funds and banks
Industry funding
The research project is annually financed by key market advisory and valuation firms:
Major London law firms active in real estate finance
Financial institutions from the lending community
Other financial service providers
Other market players can obtain the reports and other research outputs and support the project via the webstore:
For discounts, bespoke reports, or how to become a sponsor, please contact Nicole.Lux@city.ac.uk
Partner projects across Europe
With the support of the industry other partner projects have been created in Germany and France.
Further information on European lending markets and volumes by country can be found below:
