P2P Property Report Highlights Key Market Trends
The Cambridge Centre for Alternative Finance has recently published its eagerly-awaited 4th Annual UK Alternative Finance Industry Report, offering a uniquely detailed insight into the ever-growing UK AltFi market. These 4 key points illustrate the current position of P2P property lending in the UK:
Peer-to-Peer Property Investment Grew By 88% Between 2015-16
Described as ‘one of the largest drivers of the UK’s alternative finance industry’, P2P property lending is now the third largest sector in the AltiFi market, just behind business lending and consumer lending. Money invested via peer-to-peer platforms helped to finance in excess of 1,000 residential and commercial developments in 2016 alone, resulting in a total £1.15 billion market valuation for the UK.
Kuflink’s sustained growth has mirrored this upward trajectory, with more than £12m invested through its p2p platform since it launched in August 2016.
Men Aged 55+ Continue To Dominate the P2P Investment Market
Most peer-to-peer investment opportunities are accessible to everyone (for example, Kuflink allows investors to get started from just £100) although this report shows that certain demographics are dominating the market. Findings include:
Gender split for P2P property lending is 16% female and 84% male. In terms of actual invested funds, the gender split is 25% female and 75% male.
Age spread between investors is heavily weighted towards over 55s, with 12% aged under 35, 31% aged between 35-54 and 57% aged 55+
70% of investors in P2P property-backed deals have an undergraduate degree or higher
35% of investors have an annual income of £50,000 or above
Risk Perception in the P2P Property Lending Market
In comparison with the wider alternative finance market, the industry report found that P2P property lending is perceived as less risky than cryptocurrencies, forex, stocks and shares. However, investors perceive it to be of equal risk to buy-to-let property.
Kuflink strives to instil confidence in our opportunities, which is why we co-invest up to 20% alongside our community of investors in every deal!
Investor Preferences Are Evident for Peer-to-Peer Platforms
Research shows that when it comes to choosing peer-to-peer property deals, investors have very strong preferences. The most important investor needs were control, diversification and interest rates, and the report found that:
88% of investors prefer to control where their money goes and for how long
Kuflink’s Select-Invest offers a variety of property-backed deals with varying terms and gross annual interest of up to 7.2%*
88% of investors like to diversify their portfolio
Kuflink’s investors can choose to diversify their investment themselves with Select-Invest, or let Kuflink automatically diversify their portfolio, and their risk, with Auto-Invest or our IF-ISA.
90% of investors are influenced by available interest rates
Kuflink investors can earn up to 7.2% interest pa gross*, depending primarily on the level of risk associated with each opportunity.
Source: Cambridge Centre for Alternative Finance, 4th Annual UK Alternative Finance Industry Report
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*Capital is at risk. Rate correct as of 21/12/2017. Past performance is not necessarily a guide to future returns. Independent financial advice is recommended.