Assetz chief says P2P is “essential” in the race to the fund new homes
Assetz Capital chief executive Stuart Law has claimed that peer-to-peer lending is “absolutely essential” in the development of new builds.
Law (pictured) said planning reform and innovating in terms of how we finance housebuilding, are needed to boost housebuilding.
He added that P2P lending is a crucial method to harness investor demand and generate essential working capital for housebuilders.
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“Traditional lenders continue to show little appetite for such projects,” he said.
“We therefore need to promote a broad range of bespoke, alternative financial solutions to boost small- and medium-sized enterprise (SME) growth. This specifically includes policymakers recognising the value p2p lending offers in terms of bringing much needed private investment into the sector.
“We have seen little appetite from high street lenders for SME lending since the financial crisis of 07/08 and money available from the public purse, through Levelling Up or other programmes, simply isn’t sufficient to meet our housing needs, especially as demand for new builds continues to outstrip demand for older properties.
“There is strong demand from private investors for higher yielding property backed investments, especially where they can invest in diversified portfolios which they can manage flexibly and lower their risk profile.
“P2P is a crucial method through which we can harness investor demand, generate essential working capital for housebuilders, and boost construction output to meet the nation’s housing needs and support the economy.”
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