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Post by savingstream on Jun 24, 2016 10:52:30 GMT
Following the vote to leave the European Union, we thought we’d let you know our view on what Brexit means for the UK property market.
Our message is simple – this is an opportunity for UK property investors, not a threat.
The advantages that UK property has enjoyed are all still in place:
Continued low interest rates to favour residential and commercial property – the Bank of England has made it clear it is ready to step in with monetary easing. Interest rates are also likely to stay low for a considerable period, which will continue to favour high-yielding assets, such as residential and commercial property.
Buying opportunities if prices drop – there is a ‘wall of money’ that is looking for the right opportunity to get into the property market. Should prices dip at all, those investors are likely to invest in some size, in the knowledge that yields are attractive and bargains are unlikely to be left on the shelf for long. The 2008 global financial crisis, which was clearly a bigger event than a shift of the UK from the EU to the EEA, did not prevent longer-term increases in property prices.
Strict risk management – here at Saving Stream, we exercise rigid risk control over all the loans we write, and every investment we have made in recent months has been made with the impact of Brexit in mind. We will continue to exercise strong risk control with strict loan-to-value ratios.
Safety factor of investment in property – property has long been a safe haven for UK investors during periods of uncertainty. UK house prices grew considerably faster than UK equities during the last recession.
Structural shortage of housing – the UK’s long-term shortage of housing is not going anywhere in the short to mid-term, and neither is demand for new homes and conversions.
UK economy’s strong fundamentals – it is expected by many commentators that the UK will maintain free movement of services, goods and people by membership of the EEA (in a similar way to Switzerland and Norway), meaning that the fundamentals of the UK economy remain untouched.
The UK property market has provided strong returns through much bigger events than Brexit, and that’s the biggest reason why investors would be wise to look at this as an opportunity, not a threat.
Kind regards
The Saving Stream Team
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Jeepers
Member of DD Central
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Post by Jeepers on Jun 24, 2016 11:04:09 GMT
There's different ways of looking at it. Many big corporations have threatened to leave which would cause a downturn in commercial property prices.
On the other hand, it should allow industries in the primary and secondary sectors to thrive so causing values to increase.
At the end of the day, were in uncertain times and nobody knows but I'm sure everyone will calm down in a few days.
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jamesc
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Post by jamesc on Jun 24, 2016 11:11:20 GMT
Firstly for the record I like SS and its my largest P2P holding.
However it deeply concerns me that SS has felt the need to come out with this statement. That a normally very quiet organisation feels the need to come out with this statement so soon sends a shiver up my spine and IMHO says that SS are concerned and if SS are concerned then I am concerned !
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arbster
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Post by arbster on Jun 24, 2016 11:15:29 GMT
Or it might just mean they've seen a lot of people selling and/or setting pre-funding to £0, but they'd like to continue with business as usual.
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Steerpike
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Post by Steerpike on Jun 24, 2016 11:17:34 GMT
Firstly for the record I like SS and its my largest P2P holding.
However it deeply concerns me that SS has felt the need to come out with this statement. That a normally very quiet organisation feels the need to come out with this statement so soon sends a shiver up my spine and IMHO says that SS are concerned and if SS are concerned then I am concerned ! SS was beaten to the punch by Assetz and then Lending Works, so it seems more like a natural reaction to make a statement.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 24, 2016 11:21:50 GMT
Probably thought we're going to get pages of comments and multiple emails asking why we havent made any comment so we might as well make a comment then we can ignore the pages of comments and multiple emails about why we made a comment  |
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locutus
Member of DD Central
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Post by locutus on Jun 24, 2016 11:22:13 GMT
Firstly for the record I like SS and its my largest P2P holding.
However it deeply concerns me that SS has felt the need to come out with this statement. That a normally very quiet organisation feels the need to come out with this statement so soon sends a shiver up my spine and IMHO says that SS are concerned and if SS are concerned then I am concerned ! You're reading too much into it. A market comment for such a big event is standard practice. They were only quiet for a month or two. Before that, they were very engaged with their investors and it looks like that is returning to be the case which is quite welcome from me.
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n
Member of DD Central
Yet another Nick
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Post by n on Jun 24, 2016 11:24:20 GMT
Firstly for the record I like SS and its my largest P2P holding.
However it deeply concerns me that SS has felt the need to come out with this statement. That a normally very quiet organisation feels the need to come out with this statement so soon sends a shiver up my spine and IMHO says that SS are concerned and if SS are concerned then I am concerned ! SS was beaten to the punch by Assetz and then Lending Works, so it seems more like a natural reaction to make a statement. They are all doing it. I think if SS didn't questions would be asked  Edit: Crossed with venerables.
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Post by rigid on Jun 24, 2016 12:03:17 GMT
As long as you dont add any new loans, I am optimistic, otherwise I can see larger investors like myself (£100k+) leaving due to an over saturated market.
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Post by Deleted on Jun 24, 2016 12:09:57 GMT
As long as you dont add any new loans, I am optimistic, otherwise I can see larger investors like myself (£100k+) leaving due to an over saturated market. I agree that the addition of new loans should be better programmed and scheduled. The introduction of the 9 London loans should have been staggered ovr a week or so, and also any further loans should proceed slowly until some repayment kicks in or there is enough critical mass from new investors. The EU referendum might just be a chance to think and also consider the feeling of investors. But a professional approach must be followed for the future in the introduction and management of properties on site.
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sam i am
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Post by sam i am on Jun 24, 2016 12:54:15 GMT
As long as you dont add any new loans, I am optimistic, otherwise I can see larger investors like myself (£100k+) leaving due to an over saturated market. Maybe not adding more cash. But leaving would be easier said than done right now.
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fp
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Post by fp on Jun 24, 2016 15:27:37 GMT
Firstly for the record I like SS and its my largest P2P holding.
However it deeply concerns me that SS has felt the need to come out with this statement. That a normally very quiet organisation feels the need to come out with this statement so soon sends a shiver up my spine and IMHO says that SS are concerned and if SS are concerned then I am concerned ! SS was beaten to the punch by Assetz and then Lending Works, so it seems more like a natural reaction to make a statement. And Funding Circle
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Post by rigid on Jun 24, 2016 18:11:18 GMT
As long as you dont add any new loans, I am optimistic, otherwise I can see larger investors like myself (£100k+) leaving due to an over saturated market. Maybe not adding more cash. But leaving would be easier said than done right now. From the massive amount in the resale pot, the best way would be for existing members to pump in more cash. I bet there are a lot of wealthy individuals on here, that could easily purchase all the outstanding loans - BUT who would want to, when SS will prematurely add more fresh stock, deterring people to purchase the old stock, should the buyers ever need to cash in.
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Post by mrclondon on Jun 24, 2016 18:26:06 GMT
UK economy’s strong fundamentals – it is expected by many commentators that the UK will maintain free movement of services, goods and people by membership of the EEA (in a similar way to Switzerland and Norway), meaning that the fundamentals of the UK economy remain untouched. whilst I agree with most of your analysis I think the concept of the UK being in EEA or any similar deal that involves the free movement of people is politically naïve. If Labour and the Tories have any hope of maintaining the political status-quo they will have to deliver on what a significant proportion of the electorate believes (rightly or wrongly, its irrelevant at this point) is THE major issue that faces our country - uncontrolled immigration. Otherwise its a UKIP majority government at the following general election IMO.
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Post by GSV3MIaC on Jun 24, 2016 19:10:40 GMT
I agree .. most of the voters were/are looking for something nearer the IOM / Channel Island model, with lots of free trade but a rather tighter control over immigration/residency (regardless of where said immigrants come from).
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