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Peer2Peer Finance News | July 19, 2019

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BondMason: Private BTL landlords saw higher returns in June

BondMason: Private BTL landlords saw higher returns in June
Suzie Neuwirth

AN INCREASE in UK property prices in June boosted private buy-to-let landlords’ returns, according to new data from BondMason.

The property investment specialist, which recently announced that it was shifting its focus away from peer-to-peer loans, has released its latest monthly index.

It found that private buy-to-let landlords, on average, saw 0.3 per cent growth in returns in June and 1.8 per cent growth over the last 12 months.

Read more: BondMason raises £1.85m to expand investment services

Meanwhile, listed corporate landlords saw a 0.5 per cent contraction in June, but 3.8 per cent growth over the last 12 months.

“The uncertainty in the current UK economic climate has continued to weigh on the sector,” said Stephen Findlay, chief executive of BondMason.

“Whilst private landlords have seen a small increase this month, we expect further instability to be an ongoing factor for the housing market in the coming months, but the longer-term outlook is likely to remain positive driven by UK demographic trends.”

BondMason is winding down its P2P offering and pivoting its focus towards a new buy-to-let investment portfolio, which is ISA- and SIPP-eligible.

BondMason BRIX is a market-capitalisation weighted index of listed companies and funds that
own UK residential property for letting.

Findlay told Peer2Peer Finance News that he felt the P2P sector “has a viable future” but blamed an influx of institutional capital for pushing down returns.

Read more: BondMason unveils watchlist to spot non-performing loans