Assetz reports boom in property development funding
ASSETZ Capital said it has seen a 175 per cent year-on-year increase in the number of property developments it has funded across the country.
The peer-to-peer property lender said on Friday that the rise comes off the back of sustained growth in the funding pool for property developments, with investors still eager to tap into that market.
In July, Assetz’ development-focused lending reached around five per cent of the entire UK banking system’s lending of £537m to newly constructed buildings. This really shows the success of the peer-to-peer industry in matching the right lenders to borrowers where traditional banking has been lagging behind, the platform said.
“Although many funders with exposure to London and the South-East are hesitating on funding new projects due to various market uncertainties such as Brexit and the price falls centred around London, we’re personally experiencing a healthy demand across the rest of the UK,” said chief executive Stuart Law. “It’s important to remember that whatever the political climate, the UK still has a real gaping need for developments of new homes.
“We are however seeing a real reduction in lending to developers recently as prices of high-end properties wobble in London. The peer-to-peer market and platforms like Assetz Capital are a strong source of funding for viable schemes with experienced developers.”
Assetz Capital gained full authorisation from the Financial Conduct Authority earlier this month and is planning to launch its Innovative Finance ISA later this year.
The platform has lent £316m to UK businesses since launch in 2013, earning investors interest of more than £26m.