The latest figures from the Bank of England revealed that outstanding bank lending to property developers fell from £16bn in December 2015 to just £14.8bn for the same period last year.
Peer-to-peer (P2P) platform Saving Stream attributed this reduction in bank lending to ongoing uncertainty surrounding the effect of Brexit on the UK property market.
Liam Brooke, co-founder of Saving Stream, said: “Brexit uncertainty has hit property developers hard over the last year as traditional sources of funding tighten their belts.
“Despite Brexit, the advantages of investing in UK property remain in place.
“There is a wealth of good investment opportunities out there and although banks may be paring down lending in the sector, it’s business as usual for alternative finance providers.”
Earlier this month, P2P platform Assetz Capital revealed plans to treble its lending in the year ahead.
This preceded news that MarketInvoice had seen its lending increase four-fold during 2016.
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