A fundamental change is reshaping how capital moves through the UK’s real economy. Traditional banks, once the dominant source of real estate finance, are retreating behind tighter lending criteria, leaving space that private credit has been quick to claim. This growing network of non-bank lenders now defines one of the most dynamic segments of modern finance.
Debt funds, private equity firms, insurers, family offices and specialist lenders have built an ecosystem that serves businesses and developers no longer suited to conventional banking. Their appeal lies in speed, flexibility and a willingness to take on complexity. Financing can now be structured around the realities of a project rather than the limits of a risk model, allowing capital to flow into opportunities that might otherwise stall.
In new research, a majority expect annualised returns between 5% and 7% across infrastructure, real estate and natural resources over the next decade, reflecting confidence in inflation-linked income streams and tangible value. Real estate funds, in particular, remain favoured for their balance of stability and optionality, while infrastructure continues to attract capital seeking defensive yield.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.