BRIDGE Invest has seen a surge in millennials investing through its peer-to-peer bridging platform.
The lender said the proportion of millennial investors has doubled over the past year and now accounts for 27 per cent of all individuals who invest in loans through the firm.
Vivek Jeswani, chief investment officer of Bridge Invest, suggested this younger cohort are looking for ways to invest in property without the added expense of stamp duty or time and effort associated with managing a buy-to-let portfolio.
Read more: Assetz Exchange gets set for public launch
“We are seeing a sharp increase in the numbers of millennials investing in bridging finance through our firm, as they view lending money on a property is a better option of amassing their savings than buying in the current market,” he said.
“Millennials have lived through the property crash of 2007/2008 so are weary of negative equity.
“Many of their older counterparts, who favour traditional assets such as bricks and mortar, are seeing buy-to-let yields plummet resulting in a short-fall at retirement.
“On the other hand, millennial investors have an unconventional approach to finances and savings; by investing in alternatives with double figure returns they achieve additional disposable income. Millennials like the passive income as they do not have the time to deal with tenants, or property repairs.”
Bridge Invest offers investor rates of seven to 12 per cent to back loans ranging from £100,000 to £5m.
The minimum investment is £50,000.
Read more: Sancus launches bridging platform