Loanpad P2P - Reviews, experiences, info or updates, post them here. I'm having a dabble.

Albermarle

Sea_Shell said:

To me it's about 2-3-4 bedroom homes being taken out of circulation and converted to 6+ unit HMOs.

Whether they would have been to buy or to rent, that's yet another house that's no longer available as a family home. 😞

Today, another 2 new loans, both for 3 bed terraces to be converted to 6 unit HMOs.

I think the issue is not with HMO's per se. Many towns and cities have large houses that are too big/expensive for a normal family, but not in the sort of very desirable location that would attract better off families. Often they will be detached or semi detached.
So an HMO is better than it being underused/empty. Often in cities the tenants are vetted - young professionals preferred normally.
However I can see that converting 3 bed terraces into 6 bed HMO's is more of an issue.

Sea_Shell

Albermarle said:

Sea_Shell said:

To me it's about 2-3-4 bedroom homes being taken out of circulation and converted to 6+ unit HMOs.

Whether they would have been to buy or to rent, that's yet another house that's no longer available as a family home. 😞

Today, another 2 new loans, both for 3 bed terraces to be converted to 6 unit HMOs.

I think the issue is not with HMO's per se. Many towns and cities have large houses that are too big/expensive for a normal family, but not in the sort of very desirable location that would attract better off families. Often they will be detached or semi detached.
So an HMO is better than it being underused/empty. Often in cities the tenants are vetted - young professionals preferred normally.
However I can see that converting 3 bed terraces into 6 bed HMO's is more of an issue.

I agree.   But looking at the address of some of these most recent loans, they are in "ordinary" residential streets, not those huge Georgian terraces that have been ripe for conversion to flats for decades, and mostly have been already.

It seems Developers are having to spread their nets wider, into suburbs and adjoining villages.

It appears to be a growing trend, not just on LPs books. 😞

TheWoodler

I invested a small sum in Loanpad a while back, but took my money out probably about a year ago. It was a little experiment for me, no more. I was never completely comfortable with it for various reasons, so only invested a very small sum I was happy to lose.  

Recently I’ve had an email or two suggesting that I might want to revisit my account - so this conversation has been of interest. 

I quite agree about the ethical issues around HMOs, and have noticed that they have also been cropping up more frequently on Homes Under The Hammer. My local council has taken quite a strong stand against HMOs, only accepting them up to a certain density on traffic management grounds - which at least is something and is a stance I applaud. So I won’t be reinvesting. 

Sea_Shell

Rudyson said:

You might be better off asking on the p2p forum  https://p2pindependentforum.com/

I've posted there...no replies yet 😕

@Aceace

From what can see, the "rolling" newest 20 loans are now heading for a bigger % than 50%

I'm not at my laptop at the moment, but I think only 2 or 3 out of the last 15 or so loans have been for something other than HMO conversions.

Aceace

I replied to you post on the P2PIF here https://p2pindependentforum.com/post/516496/thread

pafpcg

Responding here rather than in the P2Pforum:

Where there is a demand, then supply will inevitably follow (provided that there's sufficient profit).  I think it was the analysis of the successive Census data that showed a steady decrease in the average number of people per household - there are many more "singleton" households as changes in society develop.  The "typical" 3-bedroom new builds beloved of house builders in the last century just don't appeal to one-person households, so inevitably developers are creating accommodation that meets demand either by new build or converting existing buildings.

Sea_Shell

pafpcg said:

Responding here rather than in the P2Pforum:

Where there is a demand, then supply will inevitably follow (provided that there's sufficient profit).  I think it was the analysis of the successive Census data that showed a steady decrease in the average number of people per household - there are many more "singleton" households as changes in society develop.  The "typical" 3-bedroom new builds beloved of house builders in the last century just don't appeal to one-person households, so inevitably developers are creating accommodation that meets demand either by new build or converting existing buildings.

Which is quite sad, in and of itself.

What awaits, a dystopian future from the pages of Make Room! Make Room!

where_are_we

Loanpad are reducing their rate on ISA Premium Classic from 6.1% to 6% on 01 September 25. A  .1% reduction compared to .25% BOE reduction so fairly reasonable? I had been thinking of using the small part of my 25-26 £20k ISA allowance still left, to fund my Loanpad ISA. 
The recent increase in loans for HMO conversions has made me think again. However, I will keep my longstanding investment intact.  

Sea_Shell

HMOs in the news quite a lot recently...and not in a good way.

Likely to become even more of a hot potato.

Aceace

where_are_we said:

Loanpad are reducing their rate on ISA Premium Classic from 6.1% to 6% on 01 September 25. A  .1% reduction compared to .25% BOE reduction so fairly reasonable? I had been thinking of using the small part of my 25-26 £20k ISA allowance still left, to fund my Loanpad ISA. 
The recent increase in loans for HMO conversions has made me think again. However, I will keep my longstanding investment intact.  

New rates are 5.13% and 6.18% AER when compounding of daily interest is taken into account.