OVER the past couple of years, there has been a boom in the number of properties which are being supported by peer-to-peer lending. P2P-backed properties are located all across the country, in many variant forms.
But as the P2P property market has expanded, a few clear trends have begun to emerge. In some parts of the country, P2P property lending is going strong. In fact, if you’re based in one of these P2P property hotspots, you may be living next door to one…
Read more: A guide to P2P property investment
Unsurprisingly, the Greater London area is extremely popular with all P2P property platforms, but one neighbourhood is particularly P2P-friendly: Walthamstow.
Wellesley is currently offering investments in three new-build properties in E17, while Octopus Choice has loaned money on more than 30 properties in the E17, N17 and N15 areas. The Octopus platform is offering rates of between 4.49 per cent and 7.99 per cent of borrowers, with an average of four per cent in returns for investors.
The West Yorkshire town of Huddersfield has been a surprising recipient of P2P property funding, largely thanks to property platform Lendy, which has financed several large property developments there. Its proximity to Manchester and Leeds means that it is likely to attract even more developer interest in the coming years.
Landbay currently keeps 21 per cent of its property portfolio in the South East, with dozens of properties in and around Eastbourne. The seaside town has also been a hit with CrowdProperty investors, who have fully funded two residential projects there. Nearby Hastings is another burgeoning hotspot, with a number of residential properties appearing on Landbay’s loanbook.
Kuflink’s chief executive Narinder Khattoare has singled out Brighton as a potential P2P hotspot. Landbay has funded three properties in Brighton in recent years, while LendingCrowd is offering several loans on residential properties in East Sussex.
Northern Ireland has some of the cheapest homes in the UK, making it an attractive prospect for property developers. Blend Network has seized on this opportunity by funding a series of property development projects in border towns such as Newry and Omagh. Meanwhile, Assetz Capital has signalled its commitment to the region by setting up an office in Belfast last year, and funding a £3m property loan in the Holywood area earlier this year.
The House Crowd has a number of residential and commercial properties in Sheffield, while Landbay has funded seven properties in Sheffield, offering borrower rates of 3.49 per cent.
Wellesley is offering three loans in the Manchester and Salford area, while Landbay has funded more than 15 properties across Greater Manchester. Earlier this year, The House Crowd raised £1.3m in just 24 hours for housing developments in the Greater Manchester.