2021: The Final Hurdle For The Property Market?
As we stand with our feet planted on the bottom rung of the 2021 ladder, it’s tough to know exactly how this year is going to pan out for the property market and peer-to-peer investing scene. However just as we have been all the way through this pandemic, we continue to remain optimistic and hopeful.
It’s quite remarkable really when you think about how well the property market has performed over such an extraordinary year that we’ve just witnessed. A flattened economy and a worldwide health emergency, yet the cost of an average house rose by 6% in 2020, quite impressive given the circumstances.
Now with the rollout of a mass vaccination programme and the possibility that restrictions may begin to be lifted by mid-February, there is at last a beacon of light, and a route to an eagerly awaited economic rehabilitation at the end of what has been a very dark and depressing tunnel.
As more people are now being vaccinated and the stimulus created by the stamp duty holiday continues to be felt, we were keen to find out how our investors we feeling about the future. So, we invited them to take part in a survey to ascertain their feelings about peer-to-peer investing, The House Crowd and this year’s economic climate amongst other things and the results were very positive and insightful.
Just 17% of respondents felt negatively about investing from January 2021 onwards, indicating a general feeling of positivity among our property-backed peer-to-peer investors, and perhaps also a recognition of the robustness of the property market during this pandemic.
When asked about their current investment position, over 80% of respondents said that they had funds to invest with approximately half of those stating they were holding a cash position, which you could indicate that many are waiting for the current vaccination schedule to rollout successfully and for job security amid other uncertainties to follow suit, before investing. It could also be argued that some are holding a cash position due to the temporary absence of new investment opportunities on our platform, which has been delayed slightly whilst we carry out our due diligence on new loan opportunities under the strict government guidelines.
When asked what levels of investment they had available over 65% stated that they had £10,000+ and 45% of those £20,000+ to invest. And when asked how likely is it that they would recommend a friend or colleague to invest with The House Crowd’s property backed peer-to-peer platform, over 65% said that they are likely to recommend us.
With all of the above and a property market that can survive and perform as well as it did last year, we are encouraged to continue to seek out and provide some of the very best property backed secured peer-to-peer loans available anywhere in the UK.