Launched in 2014, CrowdProperty claims it has been responsible for £10.7 million of development finance loans between private individuals and UK professional property businesses with a database of over 6,000 registered users. The online lender also stated it has unique proprietary access to the largest property network in the UK, the Property Investors Network (pin), which notably provides a competitive advantage in terms of high-quality deal origination and has enabled the proof of the business with limited marketing investment to date. After facilitating 27 projects, CrowdProperty is now funding at speed, with the last two projects funded £910,000 in a little under 45 minutes and £490,000 in less than 20 minutes respectively.
“CrowdProperty’s relevant borrower market for residential property projects currently stands at over £10 billion and, in order to satisfy demand and political pressures to supply housing stock, this market should be c.50% higher, with explicitly stated government expectations and stimulus to encourage SME developers to significantly contribute to the UK’s housing supply needs. On the lending supply side of the market, there is approximately £5 Trillion of potential capital in savings, investments and pensions, with £1.3 Trillion of these savings earning less than 0.8% per annum on average.”
While sharing details about the lending platform’s progress, CEO of CrowdProperty, Simon Zutshi, stated:
“I am delighted that we have now proven this model of helping successful property developers to fund their projects, whilst helping investors gain a secured return on their money. All of the recent project launches have been quickly funded up by our eager and loyal base of lenders, which clearly demonstrates the traction we have built in our brand. Over the last year, we have focused on our platform technology and processes, and now we are ready to scale this business to its full potential. This will not only benefit our lenders, but also help and support SME developers, who often struggle to raise funds from hesitant banks, to access the essential funding they need to help reduce the UK housing crisis.”
Since its launch, the Seedrs campaign has successfully secured more than £400,000 from over 100 investors. It is set to close later this winter.
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