Brexit causes surge in art lending

Brexit causes surge in art lending




Specialist lender Borro has reported an increase in customers looking to secure loans against their art collections, as Brexit fears cool the art market.

The firm revealed that it had experienced a 40% rise in clients resorting to lending over the past few months, as the unpredictability of the EU referendum saw art sales fall 7% from 2014/15.

Samantha Lilley, Director of Valuations at Borro, said: “London auction houses are being more cautious with their estimates.

“There were a few big results in New York this year, unique pieces are still commanding high prices, but there is a sense that the European market has a bigger question mark hanging over it.”

Borro explained that although the EU’s resale rights and export licences were a hindrance art market, UK dealers and auction houses benefitted from an increase in European customers.

The UK currently exports £92m of art and antiques, while importing £357m worth.

A Brexit could affect import duties for dealers and make UK-based art more expensive to European buyers.

As a result, customers are looking towards lending rather than selling art to raise capital.

Claire Barrington-Jones, Director of Sales at Borro, added: “Back when the company first launched in 2009 we saw a lot of clients who didn’t want to sell simply because they didn’t like the prices they were seeing in the market.

“When selling isn’t an option, clients look for other ways of getting value out of their collection.”

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