Crowdstacker sees “sustained investment” into development loans
Crowdstacker has seen increased enquiries from housebuilders and developers looking for mezzanine finance, and “sustained investment” into its property development loans.
On the borrower side, the peer-to-peer lending platform said that the increased interest may reflect the part of the market that it deals with, which is small to medium-sized housebuilders who “are maintaining momentum whilst remaining careful and cautious”.
In contrast, larger housebuilders have had a tougher time in recent months, Crowdstacker said.
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“But the market conditions creating this, such as higher mortgage lending rates and high inflation, are settling so perhaps we will see more confidence overall in the coming months,” it said in its property market spring report.
Additionally, Crowdstacker reported “sustained investment” into its property development loans, which continually hit its target raises.
“The average investment per investor has also remained within expected parameters (£1,100 and £1,700) over the last six months, indicating on-going confidence from investors who like to include property as an asset class in their portfolios,” the platform added.
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Looking at the wider UK property market, Crowdstacker said that “things are starting to look more settled” after “an unusual last few years”.
It noted house price growth, albeit at lower levels, with buyers and sellers starting to re-emerge into the market, and an increase in the number of approved house purchase mortgages.
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“Both of these are signs of how resilient the UK property market is generally,” the firm said. “It is buoyed up by the necessity of moving house, and the demand from those wanting to get on, or move up, the property ladder.
“Latest data from the IMF indicates that interest rates are likely to return this year to levels that we have been more used to over the last two decades, and inflation should also decrease to a more comfortable level. Both of these are signs that the UK economy is returning to steadier ground which should further increase consumer confidence as 2023 progresses.”