{
  "id": 16733330,
  "title": "Chaos in UK property market continues with many unregulated lenders",
  "url": "https://urgent.news/2026/10/27/chaos-in-uk-property-market-continues-with-many-unregulated-lenders",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-27T09:56:00.000Z",
  "source": {
    "name": "IOL",
    "slug": "iol",
    "url": "https://iol.co.za/pretoria-news/opinion/2026-10-27-chaos-in-uk-property-market-continues-with-many-unregulated-lenders/"
  },
  "original_language": "en",
  "account": "The UK property market has been experiencing significant challenges in the past year. Factors such as the Gulf conflict, rising inflation, the disappearance of expected rate cuts, and negative capital values have all contributed to a decrease in deal volumes to their lowest level in nearly three years. This has led to an increase in defaults and enforcement actions by creditors. A notable case involves Mahdi Al Tajir, the owner of Highland Spring and once the richest man in Scotland. His property empire is facing defaults and creditor actions across its properties. One lender of concern is Cohort Capital, which holds defaulted mezzanine debt against two high-profile London properties, Arlington House and Park Tower hotel. The company, despite not responding to the FT's requests for comment, is not suspected of wrongdoing. However, the sequence of events, from loan to loss of control within a year, highlights the risks associated with short-term, high-cost debt in a declining market. The borrowing process often involves bridging loans, which carry high interest rates and are intended as a temporary solution until a sale or refinancing occurs. In a falling market, these issues can escalate quickly, with lenders gaining control over the exit process, potentially leading borrowers to default. The lack of regulation for 1,200 unregulated lenders in the UK means there is no oversight to ensure fair treatment of borrowers. Critics argue that these loans are designed to fail, with lenders profiting from the asset they end up owning. It is crucial for borrowers to understand the exit terms of their loans and ensure they are borrowing from authorized lenders. Until regulations catch up with the evolving market, borrowers should be wary and thoroughly scrutinize their loan agreements.",
  "summary": "A billionaire’s property empire is being picked over by its creditors, values are falling, and the lenders moving fastest answer to no conduct rule book. For South Africans with money in UK property, this warnings have stopped being theoretical.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}