Peer-to-peer lending could suit some disgruntled landlords

LendInvest is one of the fastest growing peer-to-peer property specialists and has lent more than £500m

Peer-to-peer property lending opens up the chance to make a decent return from bricks and mortar to a much wider audience (Getty Images)

There has been a buy-to-let boom in the UK in recent years as people have turned to property to get an additional income stream and financial security in retirement. But forthcoming punitive tax changes are likely to curb the appeal, so it may be the trigger to consider an alternative type of property investment.

With savings interest rates in the doldrums, property has been seen as an asset class where decent returns can be made; that's still the case, but the Chancellor's attack on landlords could be the final straw for some investors.

The growth of peer-to-peer lending has surged in the UK over the past five years and it could suit some disgruntled landlords looking for a fairer and less stressful way to derive an income from property.

LendInvest is a prime example; it is one of the fastest growing peer-to-peer property specialists and has lent more than £500m in the two and a half years since it was formed. The alternative lender is currently providing more than £22m of finance per month and in the past year has funded more than 1,200 new or rebuilt houses.

Peer-to-peer property lending opens up the chance to make a decent return from bricks and mortar to a much wider audience, with the minimum investment via LendInvest starting at £100.

It's not without risk, but neither is buy-to-let; but at least with P2P your interest rate and income level can be fixed from the outset, plus it comes without all the red tape issues and headaches associated with being a landlord.

There are no tricky tenants or burst boilers to contend with, plus you can diversify your risk by spreading your cash across a number of different properties. So while traditional buy-to-let investors are faced with increase of 3 per cent in stamp duty and a cut in mortgage interest relief on their income, P2P property investors can look forward to tax-free returns currently averaging 7.3 per cent a year with LendInvest when they become eligible to be included in an Isa from April.

Cash incentives in current accounts

We may only be a couple of weeks into the new year, but it's clear that the desire from the banks to win a bigger share of the current account market is stronger than ever.

While Santander increased the monthly fee on its 123 account from £2 to £5 last Monday, its rivals have been pulling out all the stops to attract new customers.

M&S Bank was first out of the blocks with a £100 M&S gift card if you switched your banking, plus the offer of a further £10 per credited to the gift card each month for the first 12 months as long as you pay in at least £1,000 per month and set up at least two direct debits.

The Co-operative Bank is offering its customers new monthly reward payments of £5.50 while Barclays is doubling its Blue Rewards for switchers in January.

Halifax and TSB are offering golden hellos of £100, HSBC £120, First Direct £125 and Yorkshire and Clydesdale Bank £150.

However, a financial sweetener shouldn't be the only reason for choosing your next bank account. Look at how you run your banking on a month to month basis and find an account that fits. Current accounts offering high rates of credit interest are often most expensive for overdrafts.

Andrew Hagger is an independent personal finance analyst from www.moneycomms.co.uk