THE LONGEST running peer-to-peer property platforms are providing investors with high returns and “negligible or zero capital losses,” analysis claims.
Research from P2P analysis firm 4th Way has highlighted 11 lenders who now have a track record of four years or more.
It noted P2P property platforms such as Landbay, Proplend and CrowdProperty, all of which have been trading since 2014 and have recorded zero losses on their loans so far.
The research showed that returns on P2P property platforms range from three per cent to 12 per cent, and investors can lend from as little as £25 with platforms such as FundingSecure.
Neil Faulkner, co-founder of 4th Way, said P2P property platforms provide an opportunity for lenders to diversify across a range of loans in the bridging, development, residential and commercial sectors.
“The older property P2P lending sites are, for the most part, proving themselves to be highly competent at selecting borrowers and properties, and recovering bad debts,” he said.
Read more: Landbay reaches £200m lending landmark
“With fair to excellent interest rates currently available, it is still a particularly good time to be a lender.
“Lenders in property P2P loans should spread their money across lots of loans and P2P lending platforms and, to lower risks further, weight their lending towards loans to residential or commercial landlords rather than developments.
“Lenders should also beware that loans do sometimes go wrong and, while you usually expect a good recovery, it can take a long time for any recoveries to be made in property loans.”