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June 24, 2016

Brexit: LendInvest's response

The UK has voted to leave the European Union. As the UK moves into this transition, LendInvest does so as a company that is very well-capitalised, profitable and with one of the most diverse funding bases of any UK mortgage or marketplace lender.
It is this sort of major market-moving event that we have built our business to be able to withstand.
Right now, our priority is ensuring that LendInvest remains a great place for very talented people to come to work, regardless of their country of origin. We have a great – and growing – team in place and it’s business as usual for all of us today.
Longer-term, we do not anticipate a wide-scale crisis of 2008 proportions impacting UK property. In fact, we believe that talk of a property crash may be exaggerated. Overnight the fundamentals of the property market have not changed – demand still strongly outweighs supply, the country remains in the grip of a huge housing deficit providing the foundation for the market, and property will always be an attractive asset class.
It is possible that we will see some downward movement in house prices around the country, particularly in London and the Southeast, as the market resets to the new status quo. It is our firm belief, however, that the UK property market remains fundamentally resilient.
Where there are shocks, there are opportunities too. Brexit may provide an opening for the UK housing market to cool and reset in areas where rising house prices are stifling first time buyers and others that want to buy property. Added to this, the possibility of some interest rate fluctuation and the falling value of the pound against other currencies should go a long way to offsetting selling pressure.
At the end of the day, people still need houses to live in, and the fact that we are leaving Europe doesn’t change that.
LendInvest has won support and earned credit in recent years for our ability to adapt, be agile, and live up to our borrower tagline of being ‘fast and flexible’. Nothing there is about to change. We will continue to adapt and mould to the changing economic environment with a firm conviction that we are creating a better customer experience for mortgage borrowers and investors.
Update: Brexit, four weeks later