In the face of persistently high inflation and a Bank of England base rate of 4.5%, CrowdProperty is addressing the mounting pressure on household budgets by enhancing the rates of return on its property development projects.
The peer-to-peer lending platform announced today that it will offer increased rates of 8.0% to 9.0% on both new development facilities and follow-on raises for existing project facilities.
CrowdProperty’s decision reflects the latest changes in market conditions and follows investor feedback. The enhanced rates should further aid in cushioning household budgets and providing investors with greater returns.
CrowdProperty, known for its curated lending opportunities, allows investors to diversify their portfolios effectively, mitigating risk. The average investor on CrowdProperty’s platform, as of May 2023, is diversified across 76 first-charge secured projects, with an average realised return of 8.03%, exceeding the average contract rate of 7.72% on those loans.
Commenting on the recent move, Mike Bristow, CEO (pictured) of CrowdProperty, said: “In response to market factors, we raised investor rates of return in January and have decided to do so again. Our continuous evaluation of the market and feedback from our investors inform these decisions.”
Bristow added: “We have repaid a total of £187m to investors and continually draw high-quality property projects to meet the demand on our platform. Many investors are increasingly leveraging our AutoInvest and AutoReinvest tools to effortlessly deploy, diversify, and reinvest funds in these opportunities, including via both Innovative Finance ISA and pension tax-efficient routes.”
