propertytalk Live! - Banks start releasing distressed property assets

propertytalk Live! - Banks start releasing distressed property assets

Nearly two-thirds of property investors (64%) believe that banks have either already begun releasing their distressed assets back into the market or will start during 2011.

Since the beginning of the credit crunch, many banks have been holding onto large volumes of distressed assets to repair their damaged balance sheets.

Yet, while research by Investec Specialist Private Bank's Structured Property Finance division shows that the majority of property professionals believe the release of these assets is underway or imminent, one in five (18%) predict that banks will delay this process until 2012 while 8% doubt it will start before 2013.

According to the study, nearly two-thirds of property professionals (64%) believe lenders would prefer to exit as soon as they are in a position to recover their debt - a figure that has increased by 16% since last year.

In contrast, one in four (27%) believes that lenders would prefer to continue working with their clients to maximise the sale price of the property at a later date; a figure that has fallen by 12% over the past 12 months.