The House Crowd expands portfolio with launch of SIPP

By John Reynolds on Monday 4 November 2019

Alternative Lending

The scheme will allow investors to invest in the property crowdfunder's products

   The House Crowd expands portfolio with launch of SIPP
Image source: Image of The House Crowd Frazer Fearnhead provided by company

Property crowdfunding platform The House Crowd has launched a pension offering so investors can include The House Crowd investments in their pensions.

The House Crowd's Self-Invested Personal Pension (SIPP) will allow investors to earn up to 10 percent a year tax free, says the crowdfunding platform, as it looks to expand its product range.

The scheme will allow investors to invest in The House Crowd's Secured Peer-to-Peer Bridging Loans, Peer-to-Peer PropertyDevelopment Loans and its Auto-Invest products.

Manchester-based The House Crowd said there is no minimum investment if investors want to be part of the scheme, which has been launched with SIPP provider Morgan-Lloyd.

The scheme requires no tax on capitals gains or income, other than equity dividends.

Frazer Fearnhead, The House Crowd CEO, said: “Since Gordon Brown altered the pension rules in 2006, it has been extremely hard for anyone who likes property as an asset class to use their pension to invest in property based assets.”

 “In partnership with Morgan Lloyd, after years of working to find a way, we’re finally able to offer people who have a SIPP (or SSAS) to benefit from the attractive rates of return provided by our property backed investments, with all the tax benefits of a pension.”

 “It’s also worth remembering that our loans are secured against property, with a first or second legal charge, and have a conservative loan to value ratio. So, while losses are possible, our property has an inherent value that presents a more secure investment than traditional investment products.”

Last month, The House Crowd increased the interest rate offered on its 30-day access account to a targeted 4.5 percent.

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