Peer-to-peer property lending experts have predicted huge growth in the property lending sector over the next three to five years, after praising the sector’s performance during the pandemic.
Speaking at the P2P Investing Summit, a virtual event hosted by Peer2Peer Finance News and AngelNews, P2P property lenders outlined the potential of the UK property market in the post-pandemic economy.
“I think the sector has performed admirably,” said Lee Birkett, chief executive and founder of property-backed P2P lender JustUs.
Birkett added that as the government seeks to boost the economy, the property market will be the biggest lever.
“The government and Treasury are really throwing everything at it for the next two to three years, with the new deposit scheme for first time buyers, zero-cost borrowing from the banks via the Bank of England, turning brownfield sites into property, turning commercial units into property. So property is a good place to be in my opinion for the next three to five years,” Birkett said.
“In an island with a growing population we’re going to continue to need housing. So that’s an area of focus for us because we’re a conservative platform and the demand is substantial.”
Jatin Ondhia, chief executive of Shojin Property Partners, agreed with Birkett, saying that “over the next three to five years there is a great opportunity for property investors.”
“Ever since the 2008 crisis, the government loves this idea of pumping money into the economy and into the market. The net result of all of this from 2008 onwards was that all of that money landed in real estate. And essentially we saw a doubling of property values in 10 years.
“If you fast forward to now, the government needs real estate to work because everyone in the country has their money tied up to some extent in real estate and they cant really afford for it to fail.
“All the money they’re pumping in will eventually end up in real estate again.”