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Secured property debt market preferred by two-thirds of investors, survey shows

According to the survey, nearly half (48%) say this investment preference is due to opportunities arising from the impact of increased regulation on mainstream lenders and the growing capital requirements placed on them when providing short-term and development property finance.

Furthermore, 41% said the market is attractive because of a supply shortage in the UK housing sector and 26% stated it’s due to a good history of value creation in this sector.  When asked specifically about the residential property development loans market, 37% said it is attractive for investors, whilst only 11% did not consider it attractive at this time.

However, the professional real estate investors interviewed believe the overall residential property lending market will remain static this year, 30% expecting it to grow and the same percentage anticipating it will shrink.

Brad Bauman, CEO, Fitzrovia Finance, explains:

“Our research shows many professional real estate investors believe there are attractive opportunities in the property debt sector for individual investors.  However, with so many property funds and investment platforms to choose from, it is important that investors understand the processes each has in place for managing risk, their experience and track record. 

“Our research found that the most important feature for real estate professionals considering using a property debt investment platform is the expertise and track record of its management team. Our specialist team at the heart of Fitzrovia Finance have an established track record of over £100m in secured property lending. With 100 years of combined expert management experience.”

Fitzrovia Finance launched to institutional investors in Sep 2017, and in May this year it opened its door to private investors. The lender 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. 

james.wallace@realassetmedia.com