Property peer-to-peer lender gets the green light, paving the way for the launch of its IFISA.
The House Crowd has joined the ranks of the fully authorised. The company, which claims to be the world’s first property crowdfunding platform, is now able to launch an Innovative Finance ISA (pending approval from HMRC). This will allow its investors to earn tax-free income for investments of up to £20,000 a year.
The House Crowd facilitates investment into development loans and other forms of property finance. The platform has raised a total of almost £70m in funds to date, spread across 353 properties. It claims to have “paid out” £13.16m to investors so far.
“We are extremely pleased to announce that after a very long 27 months from applying, we have finally received our direct authorizations from the FCA,” said Frazer Fearnhead. “It’s been a long drawn out and complicated process, partly because of the different types of products we offer (both equity and peer to peer), and partly due to shifting regulatory goal posts.”
Next the platform plans to launch a new automated investment product and website, which we’re told to look out for this month.
Fearnhead sees direct authorisation as instilling investors with greater confidence, thereby paving the way for the business to grow and attract more funding.