Commercial transactions rise 12% despite Brexit fears

Commercial transactions rise 12% despite Brexit fears

The commercial property sector appears to have been left unshaken by Brexit fears after a surge in alternative lending saw a 12% rise in transactions during May.

Data published by peer-to-peer (P2P) investment platform Saving Stream showed commercial property transactions reached 10,790 last month, up from 9,650 in April.

The firm partially attributed this rise to alternative and P2P lenders filling the gap left by Basel III regulations, which limited bank lending within the commercial property sector.

Liam Brooke, Co-Founder of Saving Stream, says: “[This data] shows that commercial property investors are finally getting the funding they need.

“There is no shortage of demand for commercial property developments here in the UK, but developers have struggled to access the funding they need to see projects through, until now.

“The wider use of alternative finance is a really positive development for the commercial property sector.”

Despite the growth in commercial property sales, the residential sector experienced a 12% decline in transactions.

Saving Stream attributes this shrinkage to the 3% rise in stamp duty in April, and some buyers awaiting the results of the EU referendum before making a purchase.

Regardless, Liam insisted that alternative lending continued to thrive.

“Alternative finance providers, such as P2P lenders are playing an increasingly important role in the UK economy.

“They help investors make higher returns, while funding sectors – including commercial property – that find it harder to access the financing they need.

“This is an exciting prospect for investors.”

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