Buy-to-let landlords are considering alternative investment options
New research* that we commissioned has revealed that 54% of buy-to-let landlords say they have been affected by recent tougher tax treatments and tighter bank lending criteria, with many selling and reducing their property holdings.
One in five of those interviewed said they have reduced the number of buy-to-let properties in their portfolios, and 15% said they were deterred them from buying more properties.
Of those interviewed that have sold buy-to-let properties over the past two years, the average cash released from the sale was £129,746.
Turning to real estate investment platforms
In addition, the findings reveal that some of these property investors are increasingly turning to real estate investment platforms as a good alternative to invest. Of those that have sold a buy-to-let property, 8% said they used the funds to invest through property debt investment platforms. One in three believes that as the buy-to-let market has become less attractive, they will use property debt investment platforms more.
These sophisticated property investors are clear on what they want to see in a property debt investment platform before using one. The most important feature is the offer of attractive secured property lending opportunities. They also value new regulations making the sector safer and more transparent.
Without the hassle of managing tenants or carrying out costly maintenance
Fitzrovia Finance launched to institutional investors in Sep 2017, and in May this year we opened our doors to private investors, who from an investment of £1,000, can benefit from attractive risk-adjusted returns of up to 5.5% p.a.** These are derived from investing in loans to carefully selected property companies, secured on quality properties with first charge security and in excess of 150% asset cover. This means that every £100 loan is secured against £150 of bricks and mortar assets.
To date we have entered into more than £120million of loans, with no defaults.
*Consumer Intelligence conducted research with 190 landlords. The survey ran from 21st to 25th June 2019.
** The indicated return is an estimate that investors can earn, after fees but before bad debt and tax. View our platform statistics for more detail.