Peer-to-peer lender Assetz Capital has lent more than £500m to SMEs and property developers, as appetite for alternative forms of finance continues to rise.
Assetz Capital has been particularly active in the development finance space, with half of all lending being used to fund building projects, and with the majority of that being for housing. The firm has helped to finance more than 1,700 new homes in the UK so far.
Assetz recently expanded its product offering by launching a new loan to help professional landlords and property developers refurbish residential properties across the UK.
Stuart Law, Chief Executive at Assetz Capital, commented:
“We have seen truly remarkable growth in the peer-to-peer sector. Following the financial crash, the availability of bank loans to small to medium businesses has reduced significantly, from around £200bn down to around £165bn. Peer-to-peer funding has been a real lifeline for growing businesses, by providing flexible, secured loans to help plug this gap alongside the rest of the alternative finance industry.
“With the renewed governmental focus on housebuilding across the UK, driven in part by our new housing minister, we expect to see a further rise in demand for development finance. In particular, city centres and prime commuter belts across the UK look set to be development hotspots, so we expect our strong pipeline of activity to continue.”