The Scottish property market was plunged deeper into disarray on the 24th March 2020 as the Registers of Scotland (RoS) closed the application record, which records the transfer of ownership and registration of lenders charges. Since the application record was closed, RoS has been working closely with the Law Society of Scotland, UK Finance and key stakeholders to devise a solution which will keep staff safe but allow applications to be processed remotely. However, the solution was not simple to implement. Registration law in Scotland was modernised in 2014 with the introduction of the Land Registration etc. (Scotland) Act 2012 which provided RoS with a statutory basis for their powers and to implement a workable solution to reopening the application would require a legislative amendment. The Coronavirus (Scotland) Act 2020 came into force on the 7th April 2020 and provides a workaround to allow applications to be submitted electronically however, this is still in the beta testing phase. Myself and McVey and Murricane have been working closely with RoS trailing the new workarounds and providing feedback. For further information, please contact Fallon Sara Spencer , Principal and Head of Specialist Lending.

What is Peer to Peer (P2P) lending? Peer-to-peer (P2P) lending allows financing to be obtained directly from other individuals, without involving a bank or building society. P2P is essentially an online finance marketplace connecting those who want to lend money with those in need of financing. How P2P evolved When P2P was introduced in 2005 it was used by high-risk borrowers who were likely to be rejected by traditional lending institutions. However, in recent years use of P2P has expanded to provide mainstream financing for: Paying off credit card debt at a lower interest rate; Home improvements; and Purchasing a new car. With expansion comes regulation Although P2P was introduced in 2005, the first regulations were not published until 2014. As the sector continues to grow and expand, boosted by the higher returns for investors in an apparently permanent low interest environment, further regulations have been published to reflect the changing nature of the sector. On the 4th June 2019, the Financial Conduct Authority (FCA) announced their proposed changes to the regulations, which will come into effect on the 9 December 2019. What are the changes? The changes are intended to protect borrowers and many of the changes focus on: greater transparency; clearer communication; robust credit risk management; and standardising the process in the event of default. What is the future? Innovative lending options will continue to expand as investors seek yield. The Scottish environment often depends upon different methodologies in achieving the same ends achieved in England and Wales. For further information, please contact Fallon Sara Spencer .