Development funding booming on Assetz Capital platform
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.”