With returns from savings accounts still at historic lows, many have turned to property investment in order to get better returns on their cash.

Landbay, a peer-to-peer property platform, says people could still make good returns without buying a house outright.

Figures from the Bank of England suggest British savers have more than £1.2trn in low paying savings accounts.

John Goodall, cofounder and CEO of Landbay, said even though risks are higher many will favour the higher returns of property investment.

“For example, if you had put £10,000 in a cash account six years ago paying a 0.5% rate, today you would now have £10,303 before tax,” he said.

“Yet a simple step away from the total safety of high street savings accounts could have seen that amount rise to £12,948 through a 4.4% Landbay rate.”

“Savers can make their first investments where, for a modest level of risk, their returns will be much higher and can play a significant part in restoring their financial health.”

The firm said many factors were making property investment attractive. The UK’s mature buy-to-let market had seen private rentals grow considerably since the turn of the century and arrears have fallen to a manageable level.

However, while this type of lender is authorised and regulated by the Financial Conduct Authority peer-to-peer lending is not covered by the Financial Services Compensation Scheme, meaning investors’ capital is at risk.