LendInvest has seen the number of properties in the UK housing market which it has supplied finance for almost double in 2015.
With a month of the year still to go the online has supplied finance for 1,222 properties since the start of 2015 – up from 663 units in 2014.
In the past year LendInvest has lent over £250m to borrowers that have created new housing supply.
The typical LendInvest developer borrows from £500,000 to £5m and creates 1 to 15 units. Whilst the majority of LendInvest-backed properties are two or three bed houses, sold for £100,000 upwards.
Christian Faes, co-founder and CEO of LendInvest, said: “The massive shortage of new housing is pushing up house prices across the country.
“The crisis we are encountering is born out of simple supply vs demand economics, the result of which is that owning a house is out of reach of much of today’s younger generation.
“Creating new housing goes directly towards addressing this issue, and LendInvest is proud to be part of the solution to the housing market in the UK.
“After only 30 months in business, LendInvest will supply essential financial backing for around 1% of all privately developed homes in the UK this year.
“In a market where there are a dozen house hunters for every property and major house builders don’t intend necessarily to increase the number of units they built year on year, the country urgently needs housing stock from alternative sources.
“Every housing development is underpinned by access to finance. Without the funds, builders cannot build. Where the cost of capital restricts the banks, alternative lenders must fill the void.”
LendInvest is most active in London and the South East on account of the team’s own experience and the concentration of borrowers in this region.
The firm has also backed borrowers in densely-populated towns throughout England including Nottingham, Birmingham and Ipswich.