RELENDEX chief executive Michael Lynn has said that the cooling of the buy-to-let (BTL) market has opened up opportunities for peer-to-peer investing.
Recent data from HMRC showed that BTL transactions fell by 11 per cent year-on-year in the third quarter of 2018, while a report from estate agent Hamptons showed a 13 per cent fall in the number of homes bought by landlords in the past three years.
The peer-to-peer property platform’s chief executive cited tax changes, lack of access to credit and Brexit uncertainty as reasons for the slowdown in the BTL market. He said these factors “leave investors looking for new and innovative ways to maximise their savings”.
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“P2P allows lenders to invest in specific property projects and access their money when they want it through an active resale market,” he added. “What’s more, lenders can get high returns on their money, on average eight per cent, whilst having the security of knowing that they have invested in a stable asset.
“P2P allows lenders to get the returns associated with BTL without having the hassle of managing the property themselves.”
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