As the UK continues to face a housing shortage, P2P lenders can continue to help to finance the small- and medium-sized housebuilders who are playing an important role in boosting supply
2020 has been a challenging year for many peer-to-peer lenders, but residential development finance appears to be a bright spot in the lending landscape.
A number of P2P lenders that operate in this space have reported a strong performance despite the lockdown of the property market during the first pandemic, with buoyant pipelines and vast numbers of completed projects.
As the UK continues to face a housing shortage, P2P lenders – with an enviably diverse array of funding sources – can continue to help to finance the small- and medium-sized housebuilders who are playing a pivotal role in boosting supply.
Assetz Capital’s chief executive Stuart Law said on Friday that housebuilding “remains critical to the UK’s future” and is moving up the government’s agenda.
The platform has received £40m from the British Business Bank this year to support small- and medium-sized enterprise (SME) property developers, under the coronavirus business interruption loan scheme.
After a lot of uncertainty during the first lockdown, the vast majority of developments that we fund have continued apace – and we presently see no major issues arising in this space in the time ahead, he said in an emailed customer update, Law said.
He said, our lack of exposure to the struggling central London market and deep knowledge of the regions has been important too. And while we do have a modest number of commercial mortgage borrowers in the retail and hospitality sectors, we are doing all that we can to get them through to the point where they can trade again – while maintaining interest repayments as a minimum wherever possible.
A number of P2P residential property development lenders have reported strong growth this year.
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