Peer to peer property lending platform overcomes property market uncertainty to enjoy landmark year
The House Crowd, the peer to peer lending company that helps people invest in secured property loans, has surpassed £100m of capital invested through its platform.
The milestone event follows a pivotal year for the company: one in which it began work on several prestigious development projects across the North West (via its development arm, House Crowd Developments) and the launch of several new investment products.
“I’m overjoyed to pass the £100m milestone mark”, says Frazer Fearnhead, CEO of The House Crowd. “It shows that our investors have confidence in our mission to deliver reliable, consistent returns on property backed investments – and it’s a sign of the progress we’ve made as a company over these last few years.”
The company’s latest projects, which have helped it reach this threshold, include The Downs, a £15 million development in the upmarket area of Altrincham, Greater Manchester. Phases 1 and 2 (now complete) raised £3,750,000 for the purchase and initial construction costs. Further fundraises will be launched every quarter to cover ongoing construction. The build is scheduled for completion in Q3 2020.
Another exciting development that the platform has already purchased, and will be raising funds for throughout 2019, is Chapel Walks. Situated in the most prestigious part of Manchester City Centre, the project involves the conversion of an existing period building to 14 characterful apartments. Construction starts in March 2019.
The two developments have a combined GDV of over £20 million. The target return for investments in each of these projects is 10% p.a., with investors benefitting from the security of a first legal charge.
“These developments highlight how far we’ve come in just a short time”, adds Fearnhead. “They’re the kind of projects that show exactly why it’s so important that platforms like ours exist.
“It’s always been assumed that property investment has a high barrier to entry – but with peer to peer property lending, there’s ample opportunity for everyone to benefit from high returns with good security. The UK is in the midst of a housing crisis, and we are providing much needed housing, whilst helping people to build their financial futures effectively.
“Our investors have shown that there’s a strong will to invest in the North West compared to London and the rest of the country – and that there’s a strong appetite for The House Crowd’s offering.”
These two projects have been the crowning glory on a great year for the platform, which saw it launch an Auto-Invest service and a new Innovative Finance ISA, that allows investors to earn up to 7% p.a. tax-free. The platform will also be able to offer SSAS and SIPP investments in its developments from April 2019.
