Bank lending to developers struggling post-Brexit
Bank lending to property developers has failed to recover since falling before the Brexit vote according to peer-to-peer secured lending platform Saving Stream.
The amount lent by banks to property developers has fallen 7% year-on-year, from £16bn outstanding in December 2015 to £14.8bn in December 2016 according to the Bank of England.
The reduction is thought to be from the uncertainty surrounding the outcome of the Brexit vote and its effect on the property market in the UK.
Liam Brooke, co-founder of Saving Stream, said: “There is a wealth of good investment opportunities out there and although banks may be paring down lending in the sector, it’s business as usual for alternative finance providers.
“Despite Brexit, the advantages of investing in UK property remain in place. Interest rates are likely to stay low, whilst the UK’s housing shortage is unlikely to be resolved any time soon.
“For Saving Stream and its investors, the range of opportunities is improving all the time.”