The UK is now widely perceived as a global safe haven for property investments due to its relatively prompt recovery from the global financial crisis, coupled with increased demand and lack of supply causing prices to rise steadily. This healthy and attractive environment has caught the attention of domestic and international investors alike.
Record levels of investment
Reports from the IMF praised the UK’s ‘solid growth’ and forecasts predicted 2.7% GDP growth this year, further substantiating the claim that UK property is a ‘safe haven’. Property prices have increased by 3.3% in the second quarter of this year, representing the highest house price growth since September 2014. Furthermore, The Daily Telegraph estimated that the UK buy-to-let market is now worth £1 trillion. This is great news for current property investors enjoying the steady appreciation of their portfolios. However, for those aiming to get on the property investment ladder, the increased house prices may make it a challenging task. It is therefore important to understand that investing in the property market does not necessarily require direct ownership. There are other options that will deliver increased rates of return with the level of security that property investment brings.
Wellesley & Co’s asset-backed platform
At Wellesley & Co, we appreciate how difficult it can be to find high quality investment opportunities that offer increased rates of return. Our unique peer-to-peer (P2P) lending model sees our customers invest in asset-backed loans that have been secured predominately, but not exclusively, on property. Therefore, our products deliver the exposure that satisfies investor demand to invest in the UK’s housing market.
The main advantage of our platform is that it removes the additional work and expense normally associated with purchasing a property or setting up as a buy-to-let landlord. A level of risk obviously remains, however, since P2P investing through Wellesley & Co sees funds lent to companies and individuals, putting capital at risk if a borrower were to default on loan repayments.
We offer investors the opportunity to earn fixed rate returns of up to 6.32% per year. Our innovative asset-backed model could see you start with as little as £10 which you will start earning interest on from the day you commit funds. Further to this, all investors’ funds are spread across our entire loan book to ensure we give you the highest level of diversification possible at any given time.
Unpredictable market fluctuations
Although bricks and mortar have traditionally given strong returns to investors, broader market fluctuations are always hard to protect against. Whilst income-generating assets are designed to deliver pre-set returns for a pre-ordained time, it is key for any Wellesley investor to understand that our P2P model relies on the buoyancy of the property market and, therefore, involves risk to capital.