A business publication says figures from a PropTech peer-to-peer lending firm which markets its products through Zoopla show a 95 per cent drop in lending in just three months.
Business Insider says figures from the P2PFA, the industry association for online lenders, show that Landbay saw a huge drop in lending in the third quarter of this year - it lent just £283,000 in that period compared to £5.3m in the second quarter and £16.7m lent in the first quarter of 2016.
Landbay is a peer-to-peer PropTech firm which is only two years old; it allows people to lend and provide mortgages for buy to let landlords. Investors receive a monthly return based on the mortgage repayments.
Insider Business says Landbay's third quarter lending total is the lowest ever recorded since P2PFA began publishing lending figures for its members in the third quarter of 2014.
The publication also claims that Landbay has stopped accepting new investor money for its three-year fixed product.
Business Insider quotes Gray Stern, chief operating officer of Landbay, as saying: "With our proof of concept phase complete, we took advantage of the usual summer lending slowdown to work on our next phase of growth. Landbay’s first two years’ of lending has performed remarkably well, with zero defaults or late payments across our 243 mortgages. This has positioned us well to open discussions with institutional lenders and further build out operational capability, which includes hiring and training more underwriters.
"Over this time we successfully launched our strategic partnership with Zoopla, which together with the recent base rate cut, has led to record investor inflows. Combine this with the launch of our updated technology platform last week and we’re in a strong position to rapidly scale our lending through 2017."
Some 50 per cent of Landbay’s loans are reported to be in London where the property market is suffering stagnation or worse; yesterday, Estate Agent Today carried news that Foxton’s sales revenue had slumped by a third in the third quarter of the year.
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Oops. Beginning of the end for Landbay?
Hmm. Doesn't look great, does it?
Not sure such an initiative ever really had legs. Lots of big money behind it, but not something that seemed to have a long-term strategy in place before launching.
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