Commercial property lending has tightened, according to the Royal Institution of Chartered Surveyors (RICS). Its survey for the third quarter of 2026, published on 28 October, found credit conditions at a net balance of -37%. That is down from -23% in the second quarter.
01How commercial property lending changed
RICS links the change to higher borrowing costs after the recent rise in gilt yields. Most respondents now see the investment market as being in a downturn.
Expectations for property values fell too. The balance for capital values over the next three months dropped to -15%, from -11%.
Demand from tenants held up better. The overall balance slipped to -8%, from -5%.
Rents on better buildings are still expected to rise over the coming year. The balance was +41% for prime offices and +38% for prime industrial units. Respondents expect rents on secondary offices and shops to fall.
The regions differ. Prime industrial rent expectations were +54% in the North of England and +46% in the Midlands.
02What it means if you rent your premises
So, should you buy the unit you rent? It depends on your building and your plans.
If you rent a good-quality unit, your rent may keep rising while values soften. That can make buying look better value than it did.
But tighter credit means lenders will look harder at your application. Expect questions about your accounts, your deposit and whether the repayments are affordable.
If your unit is older or in a weaker spot, rents there are expected to fall. Staying put may be the cheaper choice for now.
Our new guide on whether to buy the unit you rent covers how a commercial mortgage works and what lenders check. When you are ready to talk it through, start with growth finance for your premises.
