CrowdLords and BH target social housing investment in the UK Property Market.
Property-focused crowdfunding platform CrowdLords has formed a new partnership that will offer investors the chance to buy a stake in social housing.
Social housing
The online platform, which allows investors to view properties from a variety of landlords and developers and then invest with a minimum stake of £1,000, has joined forces with developer BH Properties to use the platform to seek funding to convert properties for social housing. Investors on the CrowdLords platform will receive equity in return for their investment, benefiting both from the income and any increase in value over the five-year investment term.
BH Properties has converted 11 properties over the past 12 months, and is looking to the partnership with CrowdLords to help fund its expansion. The developer is hoping to provide up to 50 additional properties every year through this new funding stream.
Richard Bush, co-founder of CrowdLords, said the scheme could help address the shortage of affordable housing in the UK. “Part of our purpose has always been to enable like-minded individuals to come together to provide rental properties for groups they feel are underserved or even excluded from renting from some landlords,” he said.
“Everyone benefits: investors gain the prospect of safer, higher returns, while it helps solve an issue that we all believe needs to be addressed urgently for the good of the country.” BH Properties specialises in supplying social housing controlled by the Home Office in the North West, most of which is renovated housing of multiple occupancy. It claims the properties are sourced below market value and deliver above-average yields.
The move came a week after the government announced plans to directly commission the building of up to 13,000 new affordable homes.
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