State of the Market: Alternative property lending reached £1.7bn in 2019, led by LendInvest

By Oliver Smith on Friday 16 October 2020

Alternative Lending

Overall the sector grew 41 per cent last year.

State of the Market: Alternative property lending reached £1.7bn in 2019, led by LendInvest
Image source: Rod Lockhart/LendInvest.

LendInvest was responsible for the lion’s share of peer-to-peer property lending in 2019, accounting for a whopping 58 per cent of the £1.7bn lent during the year, according to data from the AltFi Alternative Lending State of the Market Report 2020.

The data provided by Brismo (recently acquired by LoanClear) shows an explosive year-on-year growth of the property lending sector up from £1.2bn in 2018, but with much of the expansion contained in LendInvest’s loanbook.

In terms of sheer growth, CapitalRise topped the rankings with its 2019 originations up 312 per cent to £33.9m, helped by a shift to larger loans and securing an institutional funding line from an unnamed financial institution.

CEO Uma Rajah told AltFi not to expect a slowdown in CapitalRise’s 2020 figures as her team facilitated: “almost as much lending as we did in the whole of 2019 during the first six months of 2020.”

Indeed, despite Covid-19, industry players including LendInvest, Zorin Finance, the third largest peer-to-peer property lender, and CapitalRise have consistently announced dealflow throughout 2020.

Looking ahead lenders surveyed as part of AltFi’s State of the Market Platform Survey 2020 were among the most bullish of any lending sector.

Nearly three quarters (72 per cent) of the platforms surveyed said they believe their ability to find attractive borrowers in the next 12 months will increase, and just 14 per cent think it will go down.  

Graham Martin, head of lender relationships at Invest & Fund, told AltFi: “Secured residential property development has fared relatively well; house building was one of the first industries to be allowed to return during lockdown and property prices have held up well, most recently evidenced by the Nationwide House Price Index reaching an all-time high in August.”

“Lenders against residential property enjoy a number of protections and returns have held up well, especially when compared to the volatility exhibited in equity markets and the large cuts to dividends we have seen in 2020.”  

Want to find out where the peer-to-peer property lending sector is heading next? Find out more in AltFi’s free Alternative Lending State of the Market Report 2020.

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