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

Sign up here to take a look at the peer-to-peer investment opportunities we have available.

*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.

2018: The Year of the IF-ISA

You could be earning up to 5.35% interest pa* with an Innovative Finance ISA; the latest addition to the ISA family and a growing financial trend for 2018!

With bank rates at a constant low and inflation rising, your money could, in real terms, be losing value in a traditional savings account. If you are keen to earn a fantastic rate of interest from your savings this year, then an Innovative Finance ISA could be exactly what you’ve been looking for. Furthermore, with industry experts forecasting IF-ISAs to take off in 2018, there has never been a more opportune moment to consider alternative ways to earn a better return on your money. Don’t let your financial goals be among the 80% of New Year’s resolutions which are broken within the first 6 weeks!

What is an Innovative Finance ISA?

An Innovative Finance ISA (IF-ISA) is the most recent addition to the ISA family, introduced by the UK Government in 2016, giving you the opportunity to use your £20,000 annual ISA allowance† to invest in peer-to-peer opportunities with the added benefit of tax-free interest.* IF-ISAs can offer much higher interest rates than many traditional Cash ISAs and their introduction builds upon the popularity of the peer-to-peer sector, through which more than £10 billion has already been invested in the UK.

How are IF-ISAs different to traditional ISAs?

Many traditional ISAs typically offer below 1% interest pa, whereas IF-ISAs can offer much larger returns. For example, Kuflink’s customers earn up to 5.35% interest pa* – that’s more than 5 times the average! Funds you invest in an IF-ISA count towards your £20,000 per annum tax-free savings allowance. †

What are the key features of Kuflink’s IF-ISA?

As well as offering a higher rate of interest than traditional Cash ISAs, Kuflink’s IF-ISA provides a hassle-free way to make your money work harder for you:

Invest up to £20,000 pa tax free†
Invest from just £100
Invest for either 1, 3 or 5 years
Earn a fixed rate of interest up to 5.35% pa* depending on the term you choose
Transfer funds from your existing ISA provider for free**
No account management fees
We automatically diversify your investment, and your risk, across a portfolio of loans, generating interest from day one
Secured against bricks and mortar
Read more about Kuflink’s IF-ISA here

How does Kuflink’s IF-ISA allow you to benefit from house price growth?

Property experts are forecasting that UK house prices will rise by 13% in the next 5 years

Many believe that rising house prices only benefit property developers and landlords, but the continued growth of the UK property and rental markets provides security for Kuflink investors too! Funds invested in our IF-ISA are automatically diversified against various UK property-backed loans. As well as increasing the value of your investment backing, market growth helps to sustain a diverse portfolio of opportunities to suit our varied investor preferences.

At Kuflink, one of our top commitments for the New Year is to maintain that our investors have never lost a penny! Since our launch in August 2016 more than £11 million has been invested through our platform and more than 10,500 investments have been made, each resulting in solid returns for our investors.§

To earn up to 5.35% pa* register for a Kuflink IF-ISA today and ensure your 2018 gets off to a fantastic start.

*Capital is at risk. Rate based on 5-year fixed-term investment.

†Annual allowance set by HMRC for the 17/18 tax year

**Subject to exit fees from your existing ISA provider

§Past returns do not guarantee future returns. Investors are encouraged to seek independent financial advice.

Bridging market: Six predictions for 2018

“The bridging market is coming off a hugely successful 2017 and pipeline business going into January is the best that we at Kuflink have ever seen.

Housing and bridging will be boosted by Cabinet reshuffle, say Kuflink

Kuflink Bridging say it is ‘looking forward to increasing business volumes’ as the demand for short term lending has grown significantly over the past twelve months.

Kuflink Bridging joins Bridging Loan Directory

Kuflink Bridging has this week become the latest bridging finance provider to join the Bridging Loan Directory. Founded in 2011 as Alpha Bridging Solutions, they re-branded to Kuflink Bridging in 2016.