Despite a slow start in Innovative Finance Individual Savings Account (IFISA) adoption, Property Crowd has released promising results on its own offering in the sector.
The platform has announced that 44 per cent of its investment volume in the current tax year is ISA money. This is in stark comparison recent data from HMRC, which shows that since its launch a year ago, IFISAs reached only £17m total investment in the UK.
Compared to the first year performance of the Stocks and Shares ISA (£22bn), and Cash ISAs (£39bn), this markedly slower rate of investment might be explained by long waits in regulatory approval.
Through its IFISA product, Property Crowd offers investors the opportunity to invest in institutional-grade asset backed bonds alongside institutional lenders, with cash and securities held by an independent custodian.
“Much has been written about the IFISA’s slow start, but we’re seeing the opposite at Property Crowd. In fact, 44% of the platform’s investment volume in the current tax year is ISA money,” said Mark Atkinson, head of communications at Global Alternatives.
“Thanks to our more robust business model, yield-hungry crowd investors have an alternative option heading into the next ISA season.”
The savings product allows consumers to invest up to £20,000 with tax-free returns on interest, on all funds invested before the end of the 2017/18 tax year. The platform, owned by marketplace operator Global Alternatives, promises returns of 10 – 13 per cent.
In addition, if opened by the end of 2017, funds invested in a Property Crowd ISA by 2 May 2018 will also qualify for 2 per cent cash back.