The average buy-to-let landlord tends to invest close to home, in an area that is familiar and easily accessible.

But the rise of peer to peer (P2P) lending – which matches individual borrowers and lenders through an online platform, usually offering more favourable rates and terms than traditional lenders – is bringing about a new generation of “armchair” landlords who are spreading their investments across the country.

In a typical P2P lending scenario for buy-to-let investors, the investor lends their money – through the platform – to a property developer, and sees their return when the property is developed.

This form of debt-based investment, rather than buying a bricks and mortar asset, means landlords are looking further afield for opportunities, according to Sourced Capital, a P2P lending platform and part of the property investment group Sourced.

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“Spreading investments is always a better method of maximising returns, and platforms such as [ours] allow landlords to invest across the country without committing to an actual property,” says Stephen Moss, Source Capital’s founder and MD. “With the buy-to-let and wider property market requiring drastically different levels of investment and providing the same in the way of a return, peer to peer investing allows landlords to make the most of market conditions across the board, not just in the area of a single buy-to-let investment,” he adds.


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