0 minutes Less than a minute read
Citigroup and HSBC are moving away from sub-prime finance as a result of the global credit crunch, the Guardian has reported.
Citigroup is believed to have decided to sell CitiFinancial and similarly HSBC is thought to be reviewing its HFC Bank – both offer financial assistance to individuals rejected by high street banks.
The Royal Institute of Chartered Surveyors (Rics) said the credit market turmoil would "have a negative impact on investment into commercial property assets with capital values declining across all areas".
Both lenders have had difficulty because of their exposure to US sub-prime housing markets. Citigroup however, has been forced to write off £9 billion, the biggest loss in the firm’s history.
Despite these difficulties, there have been major commercial property deals across London, including a German fund buying One London Wall and huge investments from the Middle East.
Looking for office space in London? Click here to find out more