A resilient property market and a reduction in bank lending to property developers and purchasers helped drive Saving Stream, the peer to peer secured lending platform, to a landmark year in 2016.
In its 2016 Annual Review, Saving Stream says that over the last year, its outstanding loan book increased by 126 per cent from approximately GBP73 million in December 2015 to GBP165 million in December 2016.
Saving Stream adds that its loan portfolio has also significantly increased, having now lent over GBP250 million to property developers and purchasers. In addition, GBP60 million has been repaid to investors. The platform itself has grown and now has over 13,000 registered users.
Saving Stream is one of Europe’s largest and fastest growing P2P secured lenders, providing UK property finance and development loans to a broad range of borrowers and project types. Saving Stream also offers users opportunities to receive an estimated future gross annual return of up to 12 per cent, before tax, on loans they make through the platform.
Saving Stream says one of the key drivers of Saving Stream’s strong performance in 2016, particularly in the second half of the year, was Brexit.
In the wake of the referendum vote, traditional lenders pulled back even further their lending to the property sector, which meant that property developers and investors in need of capital turned to alternative providers such as Saving Stream for loans. This gave Saving Stream access to lower loan-to-value (LTV) deals that would previously have been snapped up by banks.
Saving Stream adds that bank lending to the UK property sector has halved in the last two years, following from GBP30.5 billion in October 2014 to GBP15.2 billion in October 2016, according to the Bank of England.
Liam Brooke, co-founder of Saving Stream, says: “2016 has been a year of rapid but sustainable growth for Saving Stream; we grew in every aspect of the business, from staff numbers through to the amount lent. Our simple and straightforward model allows us to offer borrowers quick decisions on their loans, whilst investors can take advantage of great lending opportunities with ease, using the online platform.
“Our user base has expanded substantially, particularly amongst 18-40 year olds, as the younger generations look beyond traditional investment products towards more innovative options.
“Brexit meant that Saving Stream had access to loans at lower LTVs as bank lending to the property sector was reduced further – giving our investor base some fantastic investment opportunities.
“2016 was a great year for Saving Stream and we expect 2017 to be just as positive. We will continue to invest in new technologies, services and talent so as to be able to offer borrowers even better service, and our investors even more opportunities to invest.”