UK P2P lending market revenues forecast to reach record high

The UK peer-to-peer lending market’s total annual revenues are set to hit a new high of £398m in 2024, after a decade of consistent growth.

Data from research firm IBIS World, analysed by P2P lending platform easyMoney, found that the P2P market’s annual revenues collectively grew by 1.6 per cent year-on-year to £376.6m in 2023.

IBIS World is now forecasting a 5.6 per cent year-on-year increase to £397.7m of annual revenues in 2024.

Read more: Healthcare and IT investment can push P2P market to double in five years

The P2P lending market’s value has grown considerably from 2013, when the sector collectively generated revenue of £20.2m.

Revenues have grown every year since then, with the largest annual increase being recorded in 2016 – an 86.6 per cent year-on-year rise to £105.3m.

“The P2P lending market keeps demonstrating impressive and consistent growth,” said Jason Ferrando, chief executive of easyMoney.

Read more: easyMoney finds UK investors bullish on 2024

“And while rising interest rates have certainly bolstered UK investment over the past year or two, we’re still very much expecting further growth this year even though rates are expected to come down.

“We can attribute a lot of P2P lending’s success to the fact that it’s accessible to investors of all shapes and sizes, from those with a few hundred quid to put to work, all the way up to uber-wealthy investors who are putting in millions of pounds.

“We also have to acknowledge the emotional impact of the past couple of years of economic turmoil. People who want to invest are seeing terrible instability and unpredictability down traditional investment avenues. At the same time, we’re seeing UK property remain strong in the face of adversity which means it’s always a good and reliable investment play.”

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