The House Crowd, a UK property crowdfunding platform, is reporting “record levels of investor confidence”. According to the platform, the House Crowd is experiencing high demand for its property-backed peer-to-peer lending products, with over 1,270 people having invested in one. The House Crowd states that 66% of its investors now repeatedly reinvesting their capital through the business.
Over the past two years, The House Crowd has migrated its platform away from primarily equity crowdfunding projects to property-backed peer-to-peer loans. Theses business’ loan projects have to date delivered an average annual interest rate of 9.1% to investors.
Frazer Fearnhead, founder and CEO of The House Crowd, said that while no investment is risk free, P2P lending in secured UK property can deliver high returns with a level of certainty that appeals to “risk weary investors.”
“Our products have a maximum loan to value ratio of 75%, which means that even if a borrower were to default, the property the loan was secured against would have to be sold for less than three-quarters of its value. We strive to deliver the ideal formula of relatively short loan terms and strong returns, which we hope will continue to bolster investor confidence,” commented Fearnhead.
Founded in 2012, The House Crowd says it has grown at over 100% per year in each of the last two years, providing a range of investments secured against property to suit different investor risk profiles and objectives.
