One in four interested in including P2P loans in their SIPP
Addressing concerns around regulation and lack of investor understanding of P2P sector could boost interest further
LONDON, Aug. 13, 2019 /PRNewswire/ -- Research released by BLEND Network, a leading property investment platform specialising in funding low-cost, accessible housing developments outside of London, shows significant interest from private pension holders in holding P2P loans via self-invested personal pension (SIPP). One in four of the survey respondents said they are interested in including P2P loans in a SIPP, and that if concerns around regulation and a lack of understanding of the sector were addressed, this figure could be higher still.
- Some 25% of respondents said they have already invested or were interested in investing in P2P loans via SIPP
- Access to fixed returns (34%) and securing higher returns (26%) were the two most compelling reasons to invest in P2P loans
- Lack of FSCS protection (53%) and money being at risk (52%) and a perception that the market is not adequately regulated (31%) were the biggest deterrents
- Some 33% of respondents said that if they thought the market was properly regulated it would be key in persuading them to invest in P2P loans
- Close to 34% said that they would hold 1-5% of their SIPP investments in P2P loans, over 25% said between 6-10%, while 15% said 10% or above
- Shares (43%), cash (33%) and unit trusts (29%) and investment trusts (22%) were the most common SIPP investments, with ETFs next (17%), gilts/corporate bonds (13%), commercial property (7%) and cryptocurrencies (6%)
Yann Murciano, CEO of BLEND Network, commented:
"The findings of our research clearly reflects significant demand among private pension holders for access to P2P lending via SIPPs. It also indicates reservations on the part of investors around regulatory developments and understanding of the product. However, the Government, FCA and organisations such as the P2P Finance Association have the opportunity to address the concerns of the SIPP holders we surveyed expressed and further help the growth of the P2P sector."
ABOUT BLEND NETWORK
BLEND Network is a property investment platform focused on lending to established property developers in high-growth areas across the UK but outside London. Lenders can lend from £1,000 to property-secured loans and earn up to 15% p.a.
SOURCE BLEND Network