LANDBAY is renewing its focus on the retail investor in 2019 and is also looking to diversify its array of institutional funders.
The buy-to-let peer-to-peer lender has spent the last 18 months focused on scaling up the business, boosted by institutional investment.
John Goodall (pictured), chief executive of Landbay, told Peer2Peer Finance News that institutional backing provided “a strong proposition” for retail investors due to the reassurance their due diligence provides but recognised the importance of both types of investors for the platform.
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He said that Landbay is looking to achieve two or three times the level of lending this year that it did in 2018 and wants to boost its retail investor base to help achieve this.
Everyday investors currently make up 10 to 20 per cent of Landbay’s investor base, depending on availability and seasonal trends.
Goodall said Landbay is also in talks with new institutional partners, including banks and funds, to expand its sources of funding.
Looking ahead, Landbay is set to achieve profitability in next year’s full-year results.
While Landbay is targeting a greater range of investors, it is not planning to diversify its offering as Goodall affirms there are great opportunities for specialists in the buy-to-let market.
Read more: Landbay reaps rewards of BTL tax changes
“The big three buy-to-let lenders are losing market share because the sector is professionalising and banks aren’t equipped to lend to them,” Goodall said.
Tax and regulatory changes aimed at cooling the booming buy-to-let market have dissuaded many so-called ‘dinner party landlords’, with ‘portfolio landlords’ taking their place, defined as those who own over four buy-to-let properties.
Read more: Landbay reaches £200m lending landmark
This article featured in the February edition of Peer2Peer Finance News, now available to read online.