Alternative lenders to the UK commercial real estate sector saw their default rates climb past 20% in the first half of the year, revealing elevated risks in their portfolios, according to a survey of creditors by Bayes Business School.
That is a marked surge from the 15.2% reported in December 2024, and significantly higher than the default rates of between 2% and 3% seen at traditional banks — possibly due to slightly different reporting guidelines, the report by the London-based institution said.