In his budget statement, the Chancellor, Phillip Hammond declared that he was providing a total of £44 billion in support, (funds and guarantees) over 5 years to kick-start house building in the UK. The government’s stated aim is to build 300,000 houses a year. The average UK house costs £190,000 to build, so even if the Chancellor could achieve his aim, these additional funds only amount to 230,000 additional houses, some 46,000 houses per year.
Meanwhile, according to HMRC figures, there are over 11 million Adult ISA and almost 1 million Junior ISA accounts. Of these, over 9 million accounts are cash ISAs, the vast majority earning under 1% per annum. These together account for close to £500 billion invested in low yielding cash ISA accounts, or to put this into context, 11 times more than The Chancellor is promising today.
Innovative Finance ISA (IFISA) accounts with a secured property peer-to-peer (P2P) platform offers the key to unlocking the funds needed to fund our housebuilders. As one of the few P2P platforms that both specialise in secured property loans and offering an IFISA, Relendex are in a key position to help boost house building initiatives. Just 2% of all cash ISA deposits recycled into our high yielding platform would boost The Chancellors initiative and help to build an extra 50,000 homes, whilst providing excellent returns for the Country’s cash strapped savers.
Relendex is a peer-to-peer (P2P) platform that provides funds to reputable experienced property developers using the considerable property and banking expertise of our team, upon terms broadly similar to the major clearing banks and with the same degree of security. Relendex is FCA approved and HMRC approved to accept ISA funds, and has provided its lenders with an average return of 8.6% p.a.
