Property lenders optimistic as house prices return to pre-Covid levels
Historically low mortgage rates and the extended stamp duty holiday have helped the UK’s property market recover to pre-pandemic levels within record time, creating more opportunities for peer-to-peer property lenders.
Stuart Law, chief executive of Assetz Capital, told Peer2Peer Finance News that the pandemic-induced property surge has protected property lending by creating more security for lenders.
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Meanwhile, Jatin Ondhia, founder and chief executive of Shojin Property Partners, noted that the “severe shortage of housing” is not going to go away quickly, creating opportunities for the most resilient platforms.
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“The pandemic was the first real test for the P2P market, and every platform had to take a long, hard look at their own risk controls to ensure that they and their investors were not over-exposed to risk,” Ondhia said.
“This led to a closure of some platforms that were not assessing or managing risk correctly, however for others it proved their resilience and strengthened their position.”
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