Yann Murciano, CEO at BLEND Network said: "The current market sell off is only partly due to fears around the impact of the coronavirus and is more a result of that fact that we are in the very late stage of the cycle and have witnessed the longest equities bull run in history. Given this, markets are extremely nervous and with coronavirus uncertainty have largely overreacted. In the short term, we expect some disruption and continued sell offs, however, this should be reversed and lead to a rebound as the virus eases or is controlled.
“Investors should be looking at fixed-return and less-risky alternative investments options. We have already seen investors liquidating their equity positions and looking for alternatives that provide steady yield. A good option remains investing in fixed –returns property lending.
“The UK house price growth has continued its upwards trend in recent months. In January 2020, it edged up to 1.9% year-on-year, the largest increase in fourteen months and up from 1.4% in December. As a result, within the property sector, peer-to-peer property lending has emerged as a ‘go-to’ shield from current market volatility for investors. The rate cut announcement from 0.75 to 0.25 will further boost the attractiveness of the sector, making borrowing “cheaper” for potential property investors.
"Although the virus uncertainty will undoubtedly affect the London property sector, this will largely be confined to the international buyer and luxury property market focused on Prime Central London. Outside the Capital, property prices are less volatile and there is a growing pool of local, specialised developers delivering projects with strong investment potential, in which investors are showing an increased interest and which is clear from the increased demand we are seeing on our platform too. Funds and platforms focused on such property sub-sectors as social, affordable and low-cost housing, where there is a clear undersupply are likely to be among those that investors target as they seek safety during this financial storm."
About BLEND Network
BLEND Network is a peer-to-peer property lending marketplace that connects lenders directly with borrowers and focuses on lending to established property developers. Lenders can lend from £1,000 to property-secured loans and earn up to 15% p.a.
Lenders can join for free and manage their loans through a user-friendly dashboard. Borrowers are double-vetted by both BLEND Networkand a sponsor before being listed on the BLEND Network platform. In addition, BLEND Network loans are only made against security to help ensure the protection of lender money in the default scenario.
BLEND Network is an Appointed Representative of Resolution Compliance Ltd which is authorised and regulated by the Financial Conduct Authority (FRN. 574048).
