CrowdProperty has announced it has increased rates paid to investors to a range of 8% to 9%. The announcement is being made following the recent move by the Bank of England, which increased benchmark rates to 4.5%. The rates paid to investors are on both development projects and follow-on raises for existing projects.
CrowdProperty said the lending opportunities on its platform allow investors to achieve risk-mitigating portfolio diversification easily.
The company reports that as of May 2023, the average CrowdProperty platform investor is diversified across 76 first-charge secured projects with an average realized return of 8.03% – which is above the 7.72% average contract rate on those loans.
Mike Bristow, CEO of CrowdProperty, noted they previously raised rates in January and have moved to raise them again as events have changed.
“We’ve now paid back a total of £187m to investors and continue to attract high-quality property projects in order to meet platform demand. An increasing number of investors are adopting our AutoInvest and AutoReinvest tools in order to easily deploy, diversify and reinvest funds in these opportunities, including via both Innovative Finance ISA and pension tax-efficient routes.”
