UK commercial transactions were up 12 percent last month compared to the same period last year, demonstrating a sector unmoved by the upcoming EU referendum vote, a study has claimed.
The number of commercial property deals completed in May 2016 was 10,790, an increase from 9,650 in May 2015, peer-to-peer (P2P) lender Saving Stream has reported. The P2P said that alternative finance solutions are answering the need of a number of commercial partners as banks continue their withdrawal from the market.
Liam Brooke, co-founder of Saving Stream, said: “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 story, however, is different elsewhere as the number of residential property transactions dropped 12 percent in May 2015 compared to the same period last year. On this figure, the report noted that a factor is a 3 percent rise in stamp duty introduced by the UK government in April which has contributed to a sense of caution on behalf of buyers and sellers until the conclusion of the referendum later this week.
Overall, the P2P sector’s future looks bright Saving Stream has claimed. Supporting that narrative was the news this week that the European Investment Bank (EIB) has committed €100 million to a fund managed by the P2P lender Funding Circle. In a deal that has been under discussion over a number of years, the EIB for the first time invested in a P2P fund. The European Commission has signalled that it wants to see more financing options available for small and medium-sized enterprises under its Capital Markets Union action plan as banks contend with lending restrictions across the continent.