Hannah Maundrell, Editor in Chief at money.co.uk comments:
"The UK Government has been toying with the idea of allowing people to invest their ISA allowance in peer-to-peer products for some time now and I suspect today's announcement is likely to be the 'shot in the arm' the industry needs to see accelerated growth. In fact, our research shows that 40% of consumers claim they would invest in a P2P product if they could do so under their tax free ISA allowance.
"People might be put off by the fact that many of these products are quite complicated. If they are really going to takeoff, I think that simplification is key. You can't escape the fact that there are some great returns on the table but, as with all investments, these accounts are not without an element of risk. Consumers shouldn't plunge their life savings in without understanding exactly how their money will be used. Equally, they are not covered by the FSC."
Salman Haqqi spent 10 years as a journalist reporting in several countries around the world. Salman left the world of journalism and moved to the UK to pursue a passion for personal finance and a desire to help people make informed financial decisions.Read Salman Haqqi's articles and guides