20/06/2016 • news
UK banks halve property lending in just two years as developers look to peer to peer lenders
According to new data from peer-to-peer property funding platform Saving Stream, bank loans to property developers fell from £32.5bn in April 2014 to £14.9bn in April 2016.
Meanwhile, alternative financing options have entered the mainstream, as property developers seek new sources of capital.
Liam Brooke, co-founder of Saving Stream, said:
“The days when banks dominated the property development lending market are well and truly finished – it’s now just as likely to be a debt fund, high net worth individual or a peer-to-peer lender that gets the spades in the ground. This kind of lending is something that banks would still like to do, but the regulatory restraints that have been put on them mean it isn’t viable for them.”