'Mr Carney’s announcement was just what the property sector has been wanting to hear'

'Mr Carney's announcement was just what the property sector has been wanting to hear'



The announcement that Mark Carney, Governor of the Bank of England, is allowing banks to release £5.7bn from their regulatory capital buffer has been welcomed by property funders.


The move is expected to result in £150bn in new lending across the UK and is seen as great news for the commercial and residential property market, according to peer-to-peer property funding platform Saving Stream.

Liam Brooke, Co-Founder of Saving Stream, said that Mr Carney’s announcement was just what the property sector has been wanting to hear.

“The additional bank lending this should free up will help support the UK’s crucial commercial and residential property markets.

“In the past two years, there [has] been a significant slowdown in lending for both commercial and residential property – especially for new developments – but this announcement should now get the banks to look again at property funding.”

Liam added that for banks, these regulatory capital restrictions had meant property funding just hadn’t been viable in the same way as it was prior to the recession.

“Increased lending by banks is also great news for early-stage financers of property and the bridging industry, because it should help to keep property prices buoyant. 

“With many experts predicting a cut in interest rates in the coming months, residential and commercial property should also continue to be favoured as a high-yielding investment opportunity in the long term.”



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