Peer-to-peer property lenders have reported a boom in demand in the first weeks since the chancellor raised the stamp duty threshold.
Chancellor Rishi Sunak increased the stamp duty threshold to £500,000 earlier this month and landlords also benefit from the exemption as they only have to pay the three per cent additional property surcharge.
P2P property lending platforms have seen increased enquiries, especially as there is still a reluctance among some mainstream lenders to approve loans.
“The stamp duty holiday has seen rise in demand across the board,” Carl Davies, chief operating officer for The House Crowd, said in a recent update to investors.
“We are holding steady our current approach of prudently maintaining The House Crowd platform to ensure its continued and efficient operation as we see our way out of the other side of the lock down.”
Filip Karadaghi, managing director of LandlordInvest, said the platform has seen a “substantial pick-up in activity.”
“Many larger lenders and those relying on institutional funding appear to be impacted still as many of their staff are still furloughed and some institutional funders are not advancing funds, so it impacts supply of credit,” he said.
“We’re also seeing specialist banks restricting their loan-to-values (LTVs), increasing requirement for mezzanine financing to compensate for the bank’s lower LTVs.
“So in summary, demand for credit has increased over the last weeks whilst supply of credit remains restricted.”