The UK remains in a higher interest rate environment, with inflation remaining stubborn. Last week’s headlines were centred around businesses (including some of the country’s biggest banks) being challenged on profiteering in this market by dragging their feet on updating their customer offers - whether on savings rates, prices at the pump, or on the supermarket shelves.
As a leader in our industry, we are constantly reviewing evolving market needs, risks and pricing to ensure we are providing the best value to our customers. Having recently implemented a new, market-benchmarked borrower pricing framework, CrowdProperty will also be significantly increasing rates offered to investors to 10.0% - 10.5% on projects from this week. This is the third time that we have increased investor rates in 2023.
With £24m of new facilities agreed in June and a pipeline of £280m, we are bringing even more capacity to invest. Investors will have more opportunity to benefit from the higher rates now being offered on our carefully curated first-charge secured property development projects, through AutoInvest or Self Select via our Standard, ISA or Pension accounts.
Mike Bristow, CEO of CrowdProperty, said: “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. This capacity enables our investors to maximise the diversification of their portfolios through AutoInvest or Self Select, Standard, ISA or Pension routes whilst helping address the severe housing deficit in the UK. There are c.4 million homes missing from the national housing market and CrowdProperty’s aim is to support SME developers in tackling this under-supply of homes.
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. 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. Together we build.”