More people set to use property investment platforms

Michael Lloyd

September 17, 2019

household finances during pandemic

One in 10 of those with savings and investments intend to invest more through property investment platforms once new FCA regulation comes into force in December.

The FCA will introduce rules to strengthen the level of protection for investors using investment-based lending platforms by providing tighter governance and more robust risk management systems.

Brad Bauman, chief executive at Fitzrovia Finance, said: “Our research shows there is a significant number of individual investors who are looking for the right property investment platform to use.

“This is driven by attractive risk-adjusted returns in a low interest rate environment, and a desire for investors to diversify their investment portfolios.

“This will only be enhanced by the welcomed new regulations coming into force later this year that make the sector more transparent and safer.

“This should intensify the spotlight on sites such as ours that offer lower risk property investment opportunities at attractive returns.

“However, property investment sites should not wait for the introduction of the new rules, they should be striving to make sure they are promoting the right investment opportunities at the right levels of returns and that the risks involved are clearly explained to potential investors.”

Over 3.4 million people with savings and/or investments are considering using online property investment platforms for the first time but have yet to find one they like and trust.

Some 27% of individual investors said negative coverage on the sector has deterred them from using these sites.

When looking at individual investors who are already using property investment platforms, 95% are considering increasing the amount they invest through them.

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