CrowdProperty raises investor rates to 10.5pc
CrowdProperty investors can earn returns of up to 10.5 per cent on projects from this week, after the platform increased rates for the third time this year.
The peer-to-peer property development lender announced that investor rates will now range from 10 per cent to 10.5 per cent, “in line with the phasing in of a new, market- benchmarked borrower pricing framework.”
Investors can access the higher rates through CrowdProperty’s auto-invest or self-select products, via its standard, ISA or pension accounts.
The Bank of England has been steadily increasing rates over the past 18 months in a bid to tame inflation. The base rate currently stands at five per cent.
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CrowdProperty noted recent headlines that centred around businesses being challenged on profiteering in this market, by not updating savings rates or food prices accordingly.
The platform said that it is “constantly reviewing evolving market needs, risks and pricing to ensure the business is providing the best value to its customers.”
“The decision to increase our rates again reflects our founding principles: a lean operation that efficiently matches the supply and demand of capital in the lending market, for the benefit of all,” said Mike Bristow (pictured), chief executive of CrowdProperty.
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“Our business model means we are able to offer attractive returns to investors whilst providing essential funding to property developers. Whilst we have made several recent announcements regarding further institutional sources of funding, our continued commitment to platform investors is part of our long-term strategy, as part of our specialist residential property development finance proposition.”
CrowdProperty also revealed that it had agreed £24m of new facilities last month and has a current pipeline of £280m.
“We’ve recently announced several milestones – 3,000 homes and £700m projects funded with £400m facilities agreed – and have an extremely strong pipeline of quality projects to bring to the platform,” Bristow said. “This capacity enables our investors to maximise the diversification of their portfolios…whilst helping address the severe housing deficit in the UK.”
CrowdProperty increased its rates in January this year to 7.5 per cent to 8.5 per cent, up from 6.2 per cent to 7.8 per cent.
This was followed by an increase to the eight to nine per cent range in May.
CrowdProperty has originated more than £400m of agreed facilities and lent more than £327m to date, funding the development of 3,084 homes.
