Consumers call for separate P2P ISA

The Government is currently reviewing responses to the P2P ISA consultation on how best to implement the changes. The survey conducted by the member platforms of the P2PFA, including RateSetter, asked more than 4,500 current peer-to-peer lending investors their opinion of the Government’s consultation plans.  

The research found that 74% say they like the idea of keeping their peer-to-peer lending in a separate lending ISA.

81% agree that peer-to-peer lending has different characteristics to investments in a Stocks and Shares ISA, while the same amount agreed that a Lending ISA will introduce more choice across the investments market.

If the Government introduces a Lending ISA, 62% said they will 'definitely' invest in one.

Commenting on the findings RateSetter CEO, Rhydian Lewis said:

“This research proves once and for all that there is sizeable demand for a Lending ISA.  An ISA, separate to cash and Stocks and Shares will provide a much needed middle ground between low yield cash and higher risk stocks. RateSetter is working hard to deliver a fantastic product that will revolutionise consumer investing and breathe new life into the ISA market.”

Christine Farnish, Chair of the P2PFA, said that the survey results give a “clear message”, adding:

“Consumers want to see greater choice across the ISA market and the creation of a Lending ISA is a positive and necessary step. Peer-to-peer lenders and consumers fully back the decisions that have already been made by the Government, but it is quite clear that they do not want to see peer-to-peer lending shoehorned into either the cash or the stocks and shares category of ISA because it is different in kind.”