Banks slash UK commercial property lending as default fears mount

Pedestrians walk past closed shops in Aldershot, U.K. on Tuesday, Aug. 25,2020. Spending by shoppers, drinkers and diners is vital to Britain's effort to emerge from its deepest recession for three centuries. Photographer: Jason Alden/Bloomberg

BANKS are putting the brakes on UK commercial real estate lending as the pandemic batters the economy and stokes fears about looming defaults.

New loans declined in the first half by 34% from a year earlier to £15.5bil (RM83.6bil), according to a report from The Business School in the City of London.