A new crowdfunding platform has launched offering retail investors the chance to invest in large scale, residential developments.
The early crowdfunding platforms have been successful in making Buy to Let investments available to a wider audience; however, the best property investment opportunities are still only available to a small minority of investors. Homegrown is aiming to resolve this by focussing on property construction, where real value lies.
Anthony Rushworth, CEO of Homegrown, said, “After the Buy to Let tax changes were imposed in late 2015 we watched the sophisticated property investors move out of the Buy to Let market on mass, towards alternatives like property development and knew there was an opportunity to offer something different to other platforms. This coincided with speaking to property developers on the lack of equity finance being one of the main reasons they weren’t able to build more homes.
“Joint ventures between equity investors and developers are common but the scale of these projects has historically meant that they have been reserved for a small number of institutional and professional investors, but crowdfunding has changed the investment landscape, and now everyday investors can invest in these projects too.”
Homegrown believes property crowdfunding is not only about democratising property investment opportunities for everyday investors, but it can also have a positive impact on society by supporting mid-sized property developers and housebuilders to build more homes, which the country desperately needs.
The idea originated when the founders discovered the small but growing US crowdfunding industry. Instantly loving the concept, and immediately recognising how and why this would be a better way to invest in property for people in the UK, Homegrown was born.
Since launching in autumn 2016, Homegrown has released three developments across five projects via the platform within London, namely London Fields (Hackney), Kilburn (NW6) and Limehouse (Docklands).