New research commissioned by secured property lender Fitzrovia Finance reveals that of those who believe it will become harder to secure property development finance from mainstream lenders, 82% said it will be because of difficulties caused by Brexit. In addition, 55% said it will be due to the financial health of mainstream lenders coming under greater pressure.
Fitzrovia Finance says this helps explain why 60% believe property investment platforms and challenger banks will take market share from traditional lenders in the property development finance market.
Brad Bauman, CEO, Fitzrovia Finance, said:
“Property investment platforms are growing their market share of the real estate development finance market and our research suggests this could be further fuelled by traditional lenders becoming less able to lend in this sector.
“While, there are many different property investment platforms for investors to choose from, they need to ensure they are comfortable with the ones they use in terms of their experience of the real estate market, their focus on risk management and their track record for delivering competitive risk-adjusted returns.”
Fitzrovia Finance competes with mainstream lenders, including the major banks, to lend money to established, experienced property businesses looking to borrow for projects of between £1m and £15m.