Assetz Capital has seen a year-on-year increase of 175% in the number of property development projects funded around the country. This rise comes off the back of a sustained growth in the funding pool for property developments, as investors scavenge for a piece of the development market.
Assetz Capital’s achieved a significant milestone in July 2017, when its development-focussed lending reached around 5% of the entire UK banking system’s lending of £537m towards 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.
Among many others, a string of successful projects through Assetz Capital has included the funding of Trent Pads’ student accommodation block; backing Athena Healthcare’s new 71-bed care home; and Gower Homes’ expansion into 47 new homes.
Despite general Brexit-related nervousness, Assetz is working well with major developers to help keep the funding market fluid.
Stuart Law, CEO of Assetz Capital 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. 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.”
As with most forms of investment, peer-to-peer lending carries a degree of risk to your capital; in this case, if borrowers were unable to repay their loans. At Assetz Capital, we seek to reduce this risk to our investors by taking asset security on every loan, with the added benefit of a discretionary Provision Fund for some of our investment accounts.