Landlord News

Are property investment platforms the solution for buy-to-let landlords?

Em Morley - October 2, 2019

54% of buy-to-let landlords say that have been affected by recent tougher tax treatments and tighter bank lending criteria, according to new research commissioned by secured property lender Fitzrovia Finance.

The research also shows that many have decided to sell and reduce their property holdings.

One in five of those interviewed for the research stated that they have reduced the number of buy-to-let properties in their portfolios. 15% said they have been deterred from investing in more properties.

Looking at those who have sold buy-to-let properties over the past two years, the average cash released from the sale was £129,746. 8% of these property investors 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.

Information has been gathered by Fitzrovia Finance on what investors want to see in a property debt investment platform before deciding to use one. Top of the list is the offer of attractive secured property lending opportunities, with new regulations to make the sector safer and more transparent taking the second spot.

Features that would motivate landlords to start investing through property investment platformsBuy-to-let investors percentage
Attractive secured property lending opportunities33%
New regulation that will make the sector more transparent and safer29%
Trust in the company’s management team and track record 28%
Attractive risk -adjusted returns26%

Brad Bauman, CEO, Fitzrovia Finance, has commented: “Property debt investment platforms are a good alternative for landlords who understand the asset class and the risks involved.  As the buy-to-let market becomes less attractive, our research suggests that many may increasingly turn to property debt investment platforms for attractive risk adjusted returns but without the hassle of managing tenants or carrying out costly maintenance.”