For some investors, buy-to-let does not look as lucrative as it once did, with peer-to-peer investing emerging as a viable alternative to the buy-to-let investment route, according to Michael Lynn, chief executive of Relendex.
With the latest data from HMRC revealing that buy-to-let transactions dropped by 11% year-on-year in the third quarter of 2018, the head of the peer-to-peer property platform hopes to persuade buy-to-let landlords to consider peer-to-peer investing.
Political and economic uncertainty fuelled by tax changes and Brexit has left many investors “looking for new and innovative ways to maximise their savings”, according to Lynn.
He continued: “P2P allows lenders to invest in specific property projects and access their money when they want it through an active resale market.
“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.”