The market seems to be flying on alternative finance platform Property Partner.
The platform has revealed that since launching nearly two thirds of its investors have bought shares in multiple properties, with investments ranging from £50 to over £100,000 which has seen it reach the £6 million milestone.
Property Partner enables people to invest in individual residential properties, just as they can in company stocks. They then receive a monthly rental income — and benefit from any capital growth — in direct proportion to their ownership.
The platform also allows investors to offer their property holdings for sale via a designated secondary market. Almost £1 million of “resale” shares have already been traded on the so-called “property stockmarket”.
Commenting on the £6m company milestone, Dan Gandesha, CEO of Property Partner, said:
"This is a huge achievement so soon after launch and we couldn’t have done it without our rapidly growing community of investors.
“The reality is that buying a residential investment property on your own is more like starting a business. Through Property Partner you can diversify your investment across multiple properties – all in a matter of minutes.
“And the recent Budget announcement by George Osborne, that mortgage interest relief will be cut for traditional buy-to-let landlords, further strengthens our appeal as an alternative way of investing in residential property.”
Investors who wish to use Property Partner can fund a variety of different properties with some examples being a flat in Whitechapel or Woking to a house in Hounslow and Hayes. So far 23 properties have been listed on Property Partner of which all have been full crowdfunded.
Earlier this year the property crowdfunding platform received a huge cash injection of £5.2 million from global investment group Index Ventures in hope that the money will allow Property Partner to build an infrastructure to make buying property a lot easier for house hunters.