UK P2P sector to grow to £376.6m this year
The UK’s peer-to-peer lending sector will grow by 1.6 per cent this year to reach a total value of £376.6m, according to new research from easyMoney.
The peer-to-peer property lender also noted that over the past 10 months, the average returns being offered by 18 major P2P lending platforms have increased by 0.27 per cent.
easyMoney calculated that the global P2P market is currently worth an estimated $133.47bn (£88.19bn), having increased in size by 26.3 per cent over the past year, and by 59.3 per cent since 2021.
Read more: P2P returns predicted to go down as market grows
This growth is expected to continue, with the global market forecast to increase by a further 26.4 per cent in 2024 and by 26.6 per cent in 2025, bringing the total market size to $213.58bn.
In the UK, the P2P sector has grown by an “astonishing” 1,600 per cent since 2013, reaching £370.7m in 2022.
“Much has been made about the P2P sector’s meteoric rate of growth and what this means for investors when it comes to the return on their investment, with some forecasting a reduction in returns as a result of wider sector expansion,” said Jason Ferrando, chief executive of easyMoney.
Read more: Investors look to alternatives as confidence in banking sector drops
“However, we’re yet to see this materialise and easyMoney, like many other platforms, has actually increased our returns for investors.
“We don’t anticipate that the continued prosperity of the sector will change this fact over the foreseeable future and we look forward to rewarding our investors further, as we benefit from the growing popularity of the P2P sector and demand for P2P platforms.”
Read more: easyMoney hikes rates for fourth time this year