"The third generation of lending is really starting to gain traction among brokers, offering total flexibility at a time when the market is in a real state of flux."
‘Product-less’ lender Octane Capital has passed £200m of lending, with regional demand and a surge in Build to Rent activity driving growth.
Octane completed on 13 loans in the last week of May alone — its biggest month yet.
It says activity is being driven by the regions, and PRS developments in particular, as investors increasingly seek value beyond the capital. Manchester, the Midlands, Kent, Surrey and Essex are proving especially active.
Octane added that PRS loan facilities outside the capital reflect "the growing focus in investor attention away from traditional buy-to-let, which is reeling from punitive tax changes".
Jonathan Samuels, CEO at Octane Capital, commented: “To hit £200m of completions is another major milestone and reflects the huge team effort put in by everyone at Octane. The third generation of lending is really starting to gain traction among brokers, offering total flexibility at a time when the market is in a real state of flux.
"While London will always remain an active environment for us, we expect a growing percentage of our lending in the future to take place in the major regional hubs, including Manchester. In the past two to three years, the balance of power between the capital and the rest of the country has really started to shift.”
Mark Posniak, managing director at Octane Capital, added: “We’re thrilled to have passed £200m of completions but it’s how we got there that’s most interesting. The Manchester loan is symbolic of what’s happening in the property market right now.
"Not only is investor attention increasingly turning away from the capital to the regions but Build to Rent is in the ascendancy, as many amateur landlords exit traditional buy-to-let due to the harsh taxation regime and tenants seek long-term, lifestyle alternatives. We’re witnessing a fundamental step-change in the market.”