The majority of property developments funded through RateSetter have managed to operate as usual despite the coronavirus pandemic, the platform has revealed.
Neal Moy, who oversees RateSetter’s property finance portfolio, said 87 per cent of the peer-to-peer lender’s property developments are still running, albeit at a slower pace.
“At the end of March the government wrote to builders to encourage them to continue building,” Moy said.
“We are actively involved in supporting our customers to ensure that developments are completed as unfinished schemes are more difficult to sell.
“Although progress on some sites has slowed, more schemes are being finished each month and, in a large number of cases, sales are already agreed and are continuing to proceed to completion.”
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Moy said it is still possible to complete projects in the current market due to the high levels of demand particularly for smaller developments.
He added that independent project monitors are still able to keep an eye on projects while practicing social distancing.
“At this end of the market in particular there is a significant deficit of supply, and demand for these properties continues,” he said.
“We have seen numerous sales over the past four weeks along with one or two client refinances, so there is still evidence of an active market, but we continue to monitor this carefully whilst supporting our existing developer clients through these unprecedented times.
“In the first two months of this year 10 per cent of our property portfolio repaid, and during March an additional 10 per cent of the portfolio repaid.”