Exclusive: CrowdProperty surges past £100m in lending following Covid-19 boom

By Oliver Smith on Wednesday 28 October 2020

Alternative Lending

CEO Mike Bristow says his platform has returned £50m in capital and interest to investors since 2014.

Exclusive: CrowdProperty surges past £100m in lending following Covid-19 boom
Image source: Mike Bristow/CrowdProperty.

Just a year after hitting £50m of property lending in October 2019, property peer-to-peer lender CrowdProperty has doubled its overall lending in the space of 12 months.

AltFi can exclusively reveal that later this morning CrowdProperty will surpass its £100m lending milestone after seeing a huge increase in demand this calendar year.

“Our outreach has built a direct-to-developer brand and we’ve now seen £3.8bn worth of applications since 2014, and we’ve funded less than 3 per cent of those,” CEO Mike Bristow told AltFi, adding that “next to nothing” comes through brokers.

“There’s clearly an economic advantage for both us and the developer, because neither is paying a broker, it also gives us better underwriting because we’re always working directly with the developer.”

The milestone comes after Birmingham-based CrowdProperty turned its first profit in late 2019 and has remained profitable every month during 2020.

“I think our cost-base is less than half of what it would cost in London, so we’re building a better resourced and more sustainable business because we’re based there,” explained Bristow.

“We now expect to be able to double our annual lending rate again next year, which would be north of £100m lent in 2021,” the CEO said, adding that he’s aiming for a per annum lending target of £400m by 2024.

Its lending activities have supported more than 230 loans across over 170 projects, which have included the development of over 1,100 homes.

To-date CrowdProperty has returned £50m worth of capital and interest to its investors, with a 100 per cent track record of paying back investors.

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