CrowdProperty hikes investor rates

CrowdProperty has raised its investor rates of return.

The peer-to-peer property development lender said the move was part of its “ongoing commitment to platform investors”.

CrowdProperty’s rates now range between 7.5 per cent and 8.5 per cent, up from 6.2 per cent to 7.8 per cent.

Investors will see the new, higher rates of return on projects launched on the CrowdProperty platform from today. Higher rates will be offered for both new development facilities and follow-on raises for existing project facilities.

The higher rates have not been transferred to borrowers for now, CrowdProperty said, as it is honouring the rates agreed with active and pipeline projects.

“We have been assessing investor rates for some time and concluded that it was appropriate to make this change to our pricing algorithm, in consideration of all market factors,” chief executive Mike Bristow told Peer2Peer Finance News via email.

“However we are holding borrower rates, as our competitive pricing on that side of the marketplace drives the highest quality lending opportunities for our platform and institutional investors. Ultimately, this will all come together to support our mission of transforming property finance to unlock the potential of small and medium sized property developers to build more, much-needed homes, all the while helping them to grow their businesses quicker and drive spend in the economy on labour, materials and services.”

In November, CrowdProperty said it was not planning to increase its borrower rates despite recent economic uncertainty.

The firm has now funded over £630m of property projects, originating £350m of development finance facilities and having lent out £280m.

“We have a very strong pipeline of projects and our team continues to work hard to bring both more capacity to invest and more projects to diversify across,” CrowdProperty said.

CrowdProperty unveiled an operating profit of £147,035 in its latest annual financial results. The platform said that it expects to post another profit next year.