Property News Round-up 25/10/16

Property News All The Latest Updates

 

Hi guys and welcome to our property news round-up, as usual we give you a quick snapshot of the latest goings-on in the property world. This week we start by looking at property rentals will outstrip property sales in 2017 to focusing on planning approvals in the Northern Powerhouse and London. Missed our last blog news round-ups? If so, catch up here.

 

Property Rentals Will Outstrip Property Sales in 2017

Property Money

Forecasts have suggested that 2017 might be the first year in eight decades where property rentals will outstrip property sales.

Johnny Morris, research director at Countrywide, mentioned in a recent Guardian article : “As some would-be buyers and sellers sit on their hands, Brexit-induced uncertainty has continued to boost the rental market … September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts. On current trends 2017 could be the first time since the 1930s that more homes are let than sold.”

A sobering thought – homeownership levels had fallen to their lowest levels in 30 years at the start of 2016, although recent figures from mortgage lenders showed a pick-up in the number of loans taken out for house purchases, the number of homes for sale remains near a record low and prices are rising. Recent events such as Brexit uncertainty as well as a lack of supply has also contributed to the dip.

Being able to get onto the property ladder is becoming even more difficult for first time buyers with prices going up steadily.

However, that’s only the beginning.The 3% stamp duty surcharge that the government introduced back in April has led to a boom in buy-to-let purchase, the ramifications have led to a bigger amount of rental properties available to tenants.

The rental market has grown at such a rapid rate that the property industry needs to start focusing on offering the right kind of property for an array of people from millennials to retirees. Many commentators have mentioned that the industry needs to move away from traditional small portfolio landlords renting out their old home to a more professional approach offering tenants the best value and services available.

 

UK Rents Growing Fastest in Manchester

Manchester Property

Rental rates have risen by 7.1% in the north-west city over the last 12 months, as more investors turn to Manchester in search of the highest yields. (Select Property Group, October 2016)

The Northern Powerhouse city was named last year by HSBC as the city with the highest yields in the country. A recent report from Countrywide outlines that rents in the UK are now rising the fastest in Manchester.

At a national level, the rate of growth in the 12 months to September 2016 was 2.2% (last year it was at 2.8%). However,in Manchester, the rent growth rose by 7.1%, more than any other city in the UK. In addition, it’s also worth noting, of the 20 largest cities in the UK, the five which recorded the largest rental rate rises were in the north and Scotland, including York, Glasgow and Liverpool.

In contrast, the south paints a different picture, for example, London and Cambridge had the highest proportion of landlords cutting monthly rates in the last year.

Both domestic and international investors are turning to Manchester to find a property asset that can deliver a strong and sustainable income.

Johnny Morris, research director at Countrywide (who we mentioned in the previous news item) mentioned that there’s a different type of two speed rental market that’s emerging, with falling stock and growing demand driving rental growth in many northern cities at a higher rate than those in the south.

 

Reasons Why Build-To-Rent is The Future of Rented Living

build to rent

This news item links with the first – in a nutshell, a new sector and product that’s on the horizon and one that syncs very well with a tenant’s lifestyle and eliminates compromise – I’m of course referring to build-to-rent.

So why is build to rent the future of renting? Firstly, build-to-rent has been constructed with today’s end-user in mind. Ideal amenities such as gyms and communal cinema rooms in the same building. Locations in the city centre close to friends and employment hubs are ideal for the likes of millennials.

A key point about build to rent that it creates a community. Having these build-to-rent apartments slap bang in the city attracts people with similar jobs and interests, with friendships and an array of activities, tenants will want to rent for a longer period.

To simply put it, it just makes sense. Tenants want it, the government agrees with the build-to-rent idea, and investors too want a slice of the share too.

Demand for rental accommodation has increased by over 17k per month over the last decade, as more people move away from homeownership and turn to the private rented sector instead. As mentioned in the first news item, with property rentals looking to outstrip property sales next year, build-to-rent is more than likely to become the number one rental product in the UK. It’s therefore an investment opportunity that cannot be ignored.

 

A Brief Look At China’s Passion For Foreign Property

China P2P

Many real-estate agents and property experts in east Asia believe a new wave of investment is just getting under way, as mainland investors develop a taste for international real estate, including postcodes up and down the UK. (The Guardian, September 2016)

When it comes to buying property, Chinese investors look at four main motivations: investment, lifestyle, emigration and education. Many seek a foothold in the UK and hope their children will go on to study at university.

In addition, cities such as London are seen as a secure place to store money that investors want to move out of China, to guard against the devaluation of the Yuan. It’s known that people in mainland China want to get their money out. They therefore use cities such as London as a safe-haven to store their hard earned cash.

However, it’s not just London, investment is now heading north and Chinese investors and hungry to invest in the likes of Manchester and Liverpool.

Manchester for example has had a lot of interest from China when president Xi Jinping visited the city last year to lend his support to George Osborne’s “northern powerhouse” project during his first state visit to the UK.

Since 2014, Chinese investors have been rushing to buy houses in the UK, the high rental yields and stable property prices have been key driving factors.

Also, the UK is very attractive to Chinese property investors because it does not have the high duties that have been introduced in countries such as Canada and Australia for foreign buyers.

Property industry commentators argue that foreign investment from countries such as China is helping to transform urban centres around the globe, they mention that it’s the only way to finance affordable new homes in cities such as London.

They also see foreign investment beneficial for helping to create jobs, improve infrastructure, and in general making the quality of life better.

However, London mayor Sadiq Khan has warned against the capital’s homes being used “as gold bricks for investment”, and has spoken out over how some new developments are given to foreign investors before locals.

Khan mentioned back in May that he sees no point in building homes in the capital if they are bought by investors from the Middle East and Asia.

He stressed that he didn’t want homes being left empty. He emphasized that he doesn’t want London to be the world’s capital for money laundering and wants to give first dibs to people who live in the capital.

 

Northern Powerhouse Outstrips London for Planning Decisions

northern powerhouse

New research shows that local planning authorities in the Northern Powerhouse deliver 22% more planning decisions per resident than those in Greater London.

Research published by the British Property Federation and GL Hearn revealed that 25 boroughs in the Northern Powerhouse made 11 major planning application decisions per 100,000 residents in comparison to nine decisions per 100,000 residents in the Greater London area.

Melanie Leech, chief executive of the British Property Federation, said: ‘It is really encouraging to see the North live up to its ‘powerhouse’ moniker, and to be powering ahead with its development pipeline. The development industry has an important part to play in ensuring growth across the country, and it is good to see that there is lots of activity in the North West. (LocalGov, October 2016)

What Are Your Thoughts?

Which of our chosen property stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

 

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The Latest P2P News – 12/10/16

P2P News – All The Latest Updates

 

Hi guys and welcome to our October P2P news blog round-up. As usual, we’ll be taking a look at the latest goings-on in the P2P world and today we start our round-up and look at the proposed regulations that peer-to-peer lenders would like to see in place to giving you some of our very own P2P tips! Missed our previous round-ups? If so, catch up here.

Peer-To-Peer Lenders Want Tougher Regulations

P2P News

Peer-to-peer lenders have said there is an “urgent” need for tougher regulation of their own sector to ensure that consumers understand the risks they are exposed to, thus avoiding a future backlash if investments fail to perform. (FT.com, October 2016)

Peer-to-Peer Finance Association (P2PFA)’s Robert Pettigrew stressed that investors need to realise that peer-to-peer lending products in no shape or form resemble anything equivalent to the guarantees represented by a bank deposit.

The P2PFA mentioned that advertisements from lenders suggesting that peer-to-peer loans were similar to a bank or savings deposit with instant access were “unhelpful”. Eight of the P2PFA members who control a large majority of the UK market are requesting that the regulator sets out stricter guidelines on how loans are marketed to consumers, as well as setting out common standards for declaring bad debts.

Back in February, Lord Adair Turner (who will feature in our third P2P news story) — former chair of the FCA’s predecessor, the Financial Services Authority — told a journalist that, over the next decade, peer-to-peer loans could be the source of losses that “make the worst bankers look like absolute lending geniuses”.

The P2PFA have admitted that they would welcome the development of new rules to “protect not exclude” retail investors, they claim that peer-to-peer lenders have introduced beneficial competition and choice into the investment and borrowing markets respectively.

There has been this fear by some that P2P is confusing in understanding the differences between the concept and also equity crowdfunding.

However, as mentioned in our previous P2P news round-up, the P2PFA stated that there was no evidence to suggest that consumers are currently underestimating the risks associated with peer-to-peer lending as different platforms have adopted a variety of approaches to ensure a high level of consumer understanding. Top industry lenders recommend that investors should require financial advice if they are unsure about the investing process.

Image source : Investopedia

Chinese P2P: Loans More Than Doubled in September

China P2P

Chinese P2P loans more than doubled to a record high at the end of September, despite the on-going challenges that the Chinese authorities face in regulating the exponentially growing sector.According to the official Xinhua news agency, P2P loans surged 153.5 percent to 956 billion yuan ($143 billion).

What’s particularly interesting from the data is that more than a month after China’s banking regulator used aggressive measures to restrain the P2P sector, warning that almost half of the 4,000-odd online lending platforms were seen as problematic.

So how has The Red Dragon been able to sustain P2P growth during problematic times? Many people moving from rural areas have a difficult time getting the loans they need because there is perception that they are not credit-worthy, because of this, there has been a surge in demand for P2P lending products and services. The government has taken steps to clean up the industry after a series of scandals (such as the Ezubao scandal which springs to mind).

 

Lord Turner Changes His Tune on P2P Lending

lord turner p2p

As briefly mentioned in the first story, one of the industry’s most well-known critics of peer-to-peer lending, Lord Adair Turner, has changed of his tune, he is now suggesting that the sector could potentially prevent a future credit crunch.

During a recent speech, Lord Turner was complimentary of the industry, he even suggested that online peer-to-peer lenders could perform credit underwriting.

In addition, he predicts that P2P lending could even act as a “spare tyre to the credit system, making credit crunches less likely.”

In contrast, he still stood by his comments that he made back in February about P2P causing losses, but understood that this loss would only make up a small part of the sector.

Image source : Business Insider

 

P2PFA Releases Major Research on Economics of P2P Lending

p2p research

The P2PFA has released a commissioned study on the economics of the peer to peer lending market in the UK. The independent assessment, provided by the economic consulting firm of Oxera, analysed the risks, costs and benefits of peer-to-peer lending and provided an objective account of how P2P business models work. (Crowdfund Insider, October 2016)

The research primarily focused on the eight-member platforms of the P2PFA – which are known for their high standards of transparency and operation – the P2PFA members comprise over seventy-five per cent of the UK market.

Oxera’s Reinder van Dijk, sees P2P lending as a “real innovation” bringing benefits to both borrowers and investors.

Some key takeaways from the research was that P2P lending has created additional competition and choice in the market for loans and investment, in addition, it provides alternatives for retail investors, opening up access to risk-and-return from an asset class of consumer and business loans with net returns of between 4%-8%.

Moreover, P2P lending does not create systemic risk, and platforms are well-placed to weather a downturn in the credit cycle – borrower defaults would need to increase at least threefold to reduce average interest rates to investors below zero.

It was also revealed that the majority of investors have a good understanding of the associated risks involved.

You can read the full report below.

UK P2PFA 2016.09.30 – Oxera Report – The Economics of P2P Lending by CrowdfundInsider on Scribd

 

Basic P2P Tips

p2p tips

To end this month’s round-up, we thought we would share some basic P2P tips to help you on your way to getting started with peer to peer investments.

Our first P2P tip of the day is to diversify – just like with a stock market portfolio diversifying is key, with P2P lending, you should further diversify by spreading investments across multiple platforms. End of the day, the more you diversify, the less likely you’ll be to lose money on your investment.

Our second tip is to do your research. As Francis Bacon once said knowledge is power. Read the reviews on each platform you consider before getting involved. In addition, ask fellow investors of their experiences. It’s worth noting that not all lending platforms are the same, so make sure you’ve researched how they conduct their business and study their procedures for screening borrowers, as well as learning how they deal with late payments and defaults.

Finally, make sure you re-invest! The last thing you want is to have a static investment, DO take advantage of the compounding yields to be gained by continual reinvestment of returns into new loans.

Looking for more tips? It’s a bit of luck we’re a generous bunch at The House Crowd, view our 7 Top Tips for Investing in P2P Lending here.

 

What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

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The Latest Crowdfunding News – 6/10/16

The Latest Crowdfunding News

 

Hi guys and welcome to another crowdfunding news edition, as usual, we will be travelling around the UK and around the globe in order to give you a snapshot of the latest goings-on in the crowdfunding world. Today we start our round-up and focus on The FCA and Cambridge University partnership, both have teamed up to review the current state of alternative finance, to ending our round-up in China. Missed our previous blog round-ups? If so, catch up here.

 

FCA & Cambridge University Team Up to Review UK Alternative Finance

hands

The Financial Conduct Authority (The FCA) and the Cambridge Centre for Alternative Finance (CCAF) have teamed up to assist in the review of the UK alternative finance industry. The joint project will inform the FCA’s ongoing post-implementation review of crowdfunding regulation which is currently in process.

There’s a consensus that the UK is a global leader when it comes to alternative finance regulation.

Moreover, The Cambridge Centre for Alternative Finance is a global leader in research on disruptive finance. The pair will be working on a program of research that will identify any changes in the nature of the industry,clients’ expectations, plus its overall place in the financial services landscape.

The unique partnership will be primarily looking at what the crowdfunding investor population really looks like and how it is evolving, another research area that they will be investigating is how investors on the platforms understand the risks involved, as well as how they use the information provided to them by fundraisers. In addition, their research will look at the types of investments crowdfunding platforms are competing with for investors’ money, plus how these platforms and investors share the burden of due diligence and whether an expectation gap exists between the two.

 

Santander UK Strikes a Partnership With an Alternative Finance Company

Santander

Santander UK has struck a partnership with an alternative finance company to fund social enterprises in a deal that marks the first tie-up between a large British high-street bank and a crowdfunding site. (FT.com,October 2016)

The banking giant is joining forces with Crowdfunder to provide £200,000 to community projects, charities and enterprises that are focused on social change across the country.

The bank will donate half the funding target of a project once it raises 50 per cent from the public online.

This headline has gained attention because the partnership further closes the gap between mainstream and alternative finance, it also paves the way for closer collaboration between a well known high-street lender and the crowdfunding sector.

Back 2014, Santander UK paired up with Funding Circle referred small business customers looking for loans to the P2P lender when the bank was unable to serve them.

However, the deal with Crowdfunder is different because equity crowdfunding involves raising money from the public who each gain a share in the company.

Managing director of Santander Business Banking, Sue Douthwaite, told the FT : “Our purpose is to help people and businesses prosper and we recognise the important role social enterprises and charities play in helping communities to thrive.

“With the power of the crowd, our £200,000 Changemaker Fund will help bring great ideas to life and enable social enterprises and community ventures to grow.”

Image source : FT.com

Africa : Has Crowdfunding Potential but Regulatory Laws need to Catch Up

Africa Crowdfunding

Last year crowdfunding platforms in Africa raised $32.3 million for various projects, data from the Afrikstart Crowdfunding in Africa report reveals. However, that figure could be much higher over the coming years if governments across the continent developed crowdfunding regulations.

As Nigerian journalist Yomi Kazeem mentions in his article for QZ.com, despite its rising popularity, the most common limitation of crowdfunding across most African countries, is a lack of legal and regulatory framework.

The Afrikstart Crowdfunding in Africa report states : “The absence of regulation limits the expansion of equity-based or debt-based crowdfunding platforms in Africa.”

Therefore, having a lack of regulation in place is likely to deter investors from using online platforms as there is no investor protection in place.

However, despite having regulation limitations, with cost of access to internet dropping in parts of Africa and smartphone penetration deepening, on the plus side, more Africans are taking advantage of crowdfunding platforms to finance projects ranging from start-ups to social causes.

South Africa comes out on top when it comes to crowdfunding, The Rainbow Nation’s platforms have raised $30.8 million, it’s worth noting that $32.3 million was raised by crowdfunding platforms from all over Africa, so it just goes to show how well South Africa is championing the concept.

The country’s dominance in crowdfunding on the continent is not accidental. According to a report, the popularity of crowdfunding in South Africa is down to the country’s “sophisticated business market, a robust and reliable regulatory credit system and supervision.”

Although not 100% perfect, other African countries can learn a lot from South Africa and adopt a more robust crowdfunding strategy.

 

Restaurant Chain “M” Secures £1.2M Just Hours After Seedrs Campaign Debut

M Crowdfunding

Just hours after restaurant chain M launched its equity crowdfunding campaign on Seedrs, the London-based company has successfully secured £1.2 million out of its £1.3 million funding goal. (Crowdfund Insider, October 2016)

Since its launch back in 2014, the chain has received numerous awards such as : Best Use of Technology The Cateys 2016, Best Young Chef UK & Ireland 2016, San Pellegrino Awards, Best for Steak and Seafood, and many more.

For those that invested in the campaign, starting with the investors that put £10k into the campaign, they will receive 25% discount at M until January 2019, a copy of Executive Chef Michael Reid’s M: a 24- Hour Cookbook, free membership of M DEN, our luxury private members lounge plus, 15% off online wine purchases.

The investors that put in between £1,000 – £9,999 will receive a 15% discount at M until January 2019, a copy of Executive Chef Michael Reid’s M: a 24- Hour Cookbook and free membership of M DEN,  their luxury private members lounge.

Lastly, those who invested between £200- £999 get 0% discount at M until January 2019 and a copy of Executive Chef Michael Reid’s M: a 24- Hour Cookbook.

You can read more about the crowdfunding campaign here.

Image source : Crowdfund Insider

Crowdfunding The Great Wall of China

great wall of china crowdfunding

Heritage officials have launched a crowdfunding campaign to help pay for restoration work on the Great Wall of China.

China Radio International has reported that more than 16,000 people have donated online since the campaign started at the end of August, raising almost 300,000 yuan ($45,000; £34,000) so far (stats taken from last month).

Dong Yaohui, who’s in charge of the fundraising effort, mentioned on the BBC website : “By pooling the contribution of every single individual, however small it is, we will be able to form a great wall to protect the Great Wall.”

The funds made will go towards restoring the Xifengkou section, which runs through a reservoir, and all of the project spending will be made public.

 

What Are Your Thoughts?

 

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it.

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The Latest P2P News – 18/8/16

P2P News – All The Latest Updates

 

Hi guys and welcome to our August P2P news blog round-up, as usual we will be giving you five of the latest stories from the P2P world. Today we start our round-up by looking at credit card giants Visa and MasterCard who are diving head first into P2P payments to focusing on UK SMEs who are flocking to P2P. Missed our last P2P News round-up? If so, catch up here.

 

Visa and MasterCard dive head first into P2P

Mastercard Visa P2P

A new partnership with Visa and Mastercard will help grow the reach of the clearXchange network, which allows customers at its member banks to make no-fee peer-to-peer (P2P) transfers.

This is for users who have a US-issued debit card, they will be able to use Visa Direct and Mastercard Send respectively to transfer funds in real time from holders of accounts at clearXchange’s member banks, which include Bank of America, JPMorgan Chase, US Bank, and Wells Fargo.

For major credit card networks this is a huge push to go digital. Both credit card titans have been working on their API platforms as well as rebranding their services. The Visa-Mastercard partnership gives clearXchange another string to its bow as it tries to grab digital P2P market share.

These partnerships should open up the world of P2P payments to an entirely new segment of the U.S. population, it can be inferred that it should in turn spur more payments of this type. A U.S. consumer survey revealed that 59% would use P2P payments due to convenience. In addition, 29% of those surveyed said they would use P2P payments for incentives.

 

Samsung Pay takes on PayPal in P2P payment

Samsung P2P

Sticking with payment giants, Samsung is also said to be planning to add a person-to-person, or P2P, transaction function to the mobile payment solution this year and will compete with PayPal’s P2P service Venmo which has gained popularity in The States and Japan respectively.

PayPal recently said the Venmo service saw the amount of transactions processed through the app increase 140 percent on-year to $4 billion in the second quarter. (The Investor, August 2016)

In Samsung’s native South Korea, Kakao, operator of mobile messenger KakaoTalk are spearheading the mobile P2P payment sector.

Commentators have mentioned that no single company is currently leading the mobile payment solution market, the adoption of a P2P function, if deployed, could give a boost to the mobile phone giant in increasing its presence in the market.

 

P2P in China: Why Firms Need Better Risk Controls

China P2P

This is one P2P issue that has had appeared regularly this year and something we have covered in a previous P2P news blog. P2P in China has become a controversial subject due to fraudulent activity taking place which resulted in a number of arrests.

Since 2015, many P2P platforms including Ezubao, the Dada Group, the Kuailu Group, the Zhongjin Group and others have been charged with illegal fundraising, involving tens of billions of yuan. (Wharton, University of Pennsylvania, August 2016)

However, this has not only happened in China, back in May the U.S. Treasury Department released a report criticising the peer-to-peer (P2P) lending business and recommended it be more tightly regulated (like it is here in the UK).

By the end of May this year, China’s P2P industry reached 2.036 trillion yuan (about $300 billion in transaction volumes).

Kaixindai‘s Zhihan Zhou was interviewed by the University of Pennsylvania and mentioned that the challenge for the industry in China goes from small to big. Many P2P platforms start from the lowest end (individual consumption credit) without gradual evolution. This causes trouble subsequently.

He uses U.S. based company Lending Club as an example – It originally hoped to evaluate personal risk based on data extracted from Facebook, Twitter and other social platforms. That is in America, which has much more sophisticated credit investigation and personal data systems than in China. So you can imagine a large amount of P2P business based on personal credit in China will meet trouble in operation if there is no appropriate risk control system in place. (Wharton, University of Pennsylvania, August 2016)

In addition he was asked about why do many P2P companies in China fail, Zhou said it could be linked to expanding too quickly, e.g. their operational capabilities including data accumulation and risk-control models haven’t caught up. He stresses that the industry requires the practitioner to understand both the internet and finance. People from traditional banks tend to stress more on risk control, but less on USX, especially on Internet-user experience. It’s all about balance.

Interested in both P2P and China? Read the full interview here.

 

How Brexit Has Impacted P2P Lending

Brexit crowdfunding

Managing director and founder of Funding Circle, James Meekings recently spoke to Bloomberg about Brexit and P2P Lending.

Bloomberg’s Adam Satariano asked James an array of questions, firstly he asked – “A key part of your business is having access to the European single market, Brexit has caused uncertainties are you thinking of changing your base of operations?”

James mentions that they have various offices in Europe from Berlin to London and have to abide by regulations in every country that they operate in. He also mentioned that the EU referendum doesn’t make a difference to how they behave in different countries.

Another question that was put forward by Mr. Satariano was about Lending Club and how they’ve been going through tumultuous times with its stock collapsing and questions about its internal controls, he asks James how their situation impacts the industry,investors, banks, and hedge funds that they rely on.

James openly admits that is has been a challenging year – from the worries of the Chinese economy, the Lending Club challenges, plus the EU referendum. He says the Lending Club challenges are isolated and are about control issues, in the UK we have a dedicate framework, and for Funding Circle they are seeing institutional investors being more aware and asking more questions about their operational risk framework, which he says is quite right. They have been reassured by the answers that the company has given them.

Watch the full Bloomberg interview here.

 

UK SMEs Flock to P2P Lending Boosting Jobs and Housebuilding

P2P News

The p2p and marketplace lending industry is driving small business and economic growth, particularly in areas hit hardest since the financial crisis, a new report suggests. (Altfi, August 2016)

A report by the Centre for Business and Economics Research (CEBR) revealed that SMEs are increasingly using p2p and marketplace lending platforms to meet their financial needs.

The findings showed that the North East of England was using this particular form of the alternative finance the most. In England, it was the region that was most affected by the 2008 financial crisis.

The CBRE’s research which was produced with Funding Circle, examined loans made through the platform to small businesses since 2010. The results found that lending by p2p platforms in the UK to small businesses rose by 50 per cent from the beginning of 2015 compared to the beginning of 2016. In addition, it claims Funding Circle’s loans have boosted the UK economy by £2.7bn since 2010, supporting 40,000 new jobs and helping small house builders to add 2,200 new homes.

CBRE and Funding Circle’s research also revealed that 61 per cent of borrowers saw their revenue increase as a result of taking a loan, while nearly half of the SMEs reported a rise in profits.

 

What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now for more Info

Property News Round-up 13/7/16

Property News All The Latest Updates

Hi guys and welcome to our first property news blog of the month, as usual we will be given you a snap shot of the latest goings-on in the domestic market. This week we look at the Manchester property market and how it is still strong after the Brexit vote to ending our round-up and focusing on landlords setting up companies in order to save tax. Slightly behind with what’s going on in the property world? If so, catch up with our last property news blog update.

Manchester Property Market Still Strong Despite Brexit

Property News North West

New development plans in the city are not overheating despite recent news of apartment developments that have been given the green light.

New schemes approved in the last few days include Salford council’s approval for a 35-storey tower and a 17-storey tower at New Bailey Street developed by Trinity Riverside Holdings and a 68-storey tower at Owen Street proposed by Renaker. The landmark development will provide 1,508 apartments and penthouses in four blocks of 39, 46, 52 and 66 storeys. (MEN, July 2016)

Natwest’s Heath Thomas mentioned in MEN that consumer confidence will affect demand for mortgages, but the fundamentals in the city’s residential market are remain sound because there is a structural shortage of homes across the length and breadth of the country.

Addleshaw Goddard’s, Marnix Elsenaar also added his views in the MEN saying Manchester has all of the ingredients it needs to take forward housing delivery, however, it will need to fight with the central government to be able to deliver the right housing products that cater for the city specifically.

He stressed that it is important to ensure central government policies don’t kill off this growing sector.

Read more on this topic here.

 

Chinese Buyers Look Again at U.K. Property

China P2P

Due to the recent drop in the pound, many Chinese property investors have started to look at the U.K. market for potential bargains.

The number of so-called leads from Chinese home-seekers for U.K. properties recently doubled according to Juwai.com, a real-estate website based in Shanghai that allows Chinese buyers to browse residential and commercial properties around the world. Leads indicate that a buyer was interested enough in a property to contact a real-estate agent or developer. (WSJ,June 2016)

Manchester in particular has seen a wealth of Chinese buyers and investors. For example, a recent development at Salford Quays, called the Dock Office, just half the apartments were sold to locals. A quarter went to Chinese nationals.

They are not just buying and investing they are also involved in the construction process.

The Beijing Engineering Construction Group is investing £800m in Manchester’s Airport City, which will include a hub for other Chinese firms to set up. President Xi Jinping saw the site in person when he visited last year. (BBC, April 2016)

Now that Manchester has direct flights to both Beijing and Hong Kong also makes it even more easy for potential investors to visit the city and seek long-term opportunities.

 

Rental Prices Increased in June

Property News Landlords

Rents kept increasing in the three months to June, but there are signs that the growth in the rental market slowed in the first half of 2016 as compared to last year. (City A.M., July 2016)

According to HomeLet, The average renter in the capital now pays £1,575 per month, up 3.9 per cent on last year. For the rest of the country, renters pay an average £773 per month, which is 3.5 per cent higher than last year.

Barbon Insurance Group’s chief executive Martin Totty shared his views in City A.M. stating : The impact of the EU referendum vote will now play out over the months ahead: if as expected, the result acts as a restraint on the supply of new housing, the gap between demand and supply in the private rental sector will remain marked; all the more so if more people decide to rent while waiting to see what happens to house prices.”

 

How Much Will Your House Be worth in 2030?

Property News - First-time buyer mortgage

The average price of a home in England will be more than £450,000 in 2030, according to research from estate agents eMoov.

Their calculations were based on the 84 per cent increase in house prices during 2000 and 2015 and applied it to the next 15 years.

The map (below) illustrates just how dangerous this current artificial inflation of the market could be in the long run (as eMoov’s Russell Quirk mentions in the Daily Mail), it’s not just London (where typical values of £1.9million could climb to £3.4million in some parts), the issue will spread all over the country.

UK Property Map 2030

Image Source : eMoov/Daily Mail

 

Landlords Expected To Set Up Companies To Save Tax

Crowdfunding News

Landlords are increasingly expected to exploit a loophole in the law that allows them to avoid the Chancellor George Osborne’s hefty, punitive tax raid on rental properties, according to a leading mortgage expert. (Landlord Today, July 2016)

Foundation Home Loans‘ commercial director Simon Bayley told the FT that he predicts to see over 75% of mortgaged buy-to-let acquisitions going through a limited liability company (LLC) structure in the next 12 year or so.

In addition, Mr. Bayley believes that many landlords may consider transferring their existing properties to a LLC.

He goes onto mention that if landlords are using income from a current rental they may require help calculating if the capital outlay is affordable for them, even if the long term benefits suggest to explore the LLC route (also mentioned in Landlord Today).

Mortgage Concepts Associates director Mike Richards agrees with Bayley’s insights, his view is that gradually most lenders who are in the sector will offer this (the 75% or more projection) and premium lenders that are charged for limited company mortgages of around 0.5% will ultimately vanish.

Moreover, he reckons that you will still get a percentage of people who will mistrust the limited company route, but in reality, this is really the only way to go for the future of the buy-to-let market in the UK.

 

What Are Your Thoughts?

Which of our chosen property stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

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The Latest P2P News – 7/7/16

P2P News – All The Latest Updates

 

Hi guys and welcome to our first P2P news blog of the month, as usual we will be giving you a snapshot of the latest news from the P2P world. This week we look at an array of topics from looking at the future of P2P to looking at how P2P performed last year. Missed our last P2P news update? If so, catch up here, in addition, take a look at Michele’s latest post on Real Estate P2P and Crowdfunding Leads Alternative Finance Industry.

P2P Has A Bright Future, Insists Dianrong Founder

P2P Future

Founder and chief executive of China’s peer-to-peer lending platform Dianrong.com, Soul Htite feels that more platforms will collapse in the future.

As mentioned previously in a past P2P news blog round-up, the news of Lending Club’s founder Renaud Laplanche, stepping down from his position following an internal probe over allegedly mis-sold loans has made many question the legitimacy of the industry.

Dianrong’s founder mentioned in a recent South China Morning Post article that a system needs to created that nobody will be able to do what Ezubao (a Chinese P2P that defrauded 900,000 investors out of more than 50 billion yuan by offering high interest rates which it was unable to pay) did.

One idea he mentions about is to ask every P2P platform out there to have a custodian bank with which borrowers must have an account.

Moreover, he goes on to say : “The existence of custodian banks also makes sure that capital actually exists and flows to the borrower so that any Ponzi Scheme could be avoided.”

Htite’s company have also been experimenting with blockchain technology, which seems to be a key trend at the moment recently, with quite a few Indian P2P companies also conducting their own research on using the concept.

It seems the future of P2P (not just in China, but on a global level) will be a lot more transparent, as the Diarong example shows by using a custodian bank.

Htite told the South China Morning Post that he believes it is “very normal” to see market bubbles burst and is sure more Chinese P2P platforms will vanish due to failing to raise the money they need to survive.

He stresses that the companies who make industry adjustments will be the ones left standing.

You can read the full article here.

 

Disruptive P2P JustUs Launches

P2P News

A new lending platform has launched with plans to raise to raise £5.35m, including £1m on crowdfunding platform Crowdcube. (MEN, June, 2016).

JustUs aims to become a provider of the broadest range of peer-to-peer consumer loans and secured lending.

Financial services entrepreneur Lee Birkett mentioned in the MEN : “I believe we are completely disrupting the status quo with a range of accessible products for borrowers from a comprehensive range of backgrounds and credit history.”

In addition, he stressed this new P2P disrupter is democratic, by the people, for the people. Savers are uninspired by their humdrum returns. JustUS can give customers access to higher returns by bringing them together with a broad mix of consumer, guarantor and secured loan products.

During Beta testing of the JustUs site, it attracted £130m of borrower applications from a marketing spend of just £150,000.

Read more on the story here.

 

Alternative Finance Continues To Make Progress Despite Slowdown

Alternative finance p2p

Data from Cambridge University has shown that P2P lending for SMEs is helping drive continued growth in the alternative finance industry, despite an overall slowdown in the market.

Their research found that the UK online alternative finance industry grew by 84% to £3.2bn in 2015, from £1.74bn in 2014. This is compared to year-on-year growth between 2013 and 2014 of 161%. (CBR, February 2016)

Researchers at the university estimate that P2P business lending, excluding real estate lending, provided the equivalent of 13.9% of new bank loans to small businesses in the UK last year, this was based on 2014 data from the British Bankers Association.

Interested in the research conducted by Cambridge University? If so read more here.

 

P2P Lending Should Outperform In A Downturn

P2P news

 

According to Polar Capital’s Nick Grind, a significant downturn in the global economy should see P2P/marketplace lending funds outperform regular credit markets. (Altfi, June 2016)

His logic is that investment trusts could be buying back their shares to manage the discounts, plus in a downturn you’re going to see spreads widen on a fixed income portfolio.

The attraction of buying of buying P2P GI or one of the others is that in theory you are getting good risk adjusted returns and there is a lot of granularity.

Read more on Grind’s insights here.

Image source : The Connectivist

 

P2P Throwback : 2015 The Year P2P Lending Went Mainstream

P2P 2015

Since today falls on Throwback Thursday, we thought we would take a look back at P2P in 2015.

2015 was a landmark year for P2P in this country, with lending of £1.26 billion in 2015 accounting for almost half (47%) of all UK P2P lending.

In addition, consumer lending accounted for almost £1.1 billion of P2P lending in 2015, more than two-fifths (40.6%) of the total. In third place was invoice factoring and financing which, at a third of a billion pounds, accounted for an eighth (12.4%) of total lending. (Assetz Capital, January 2016).

The Big three P2P firms continued to dominate, in 2015 Zopa lent £532 million, Funding Circle were not to far behind but ended the year in second place with £531 million.

RateSetter finished the year with £518 million and came third. The likes of Lendinvest and Wellesley & Co. also had a great year, lending £301 million and £152 million respectively.

What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

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The Latest Crowdfunding News – 4/7/16

The Latest Crowdfunding News

Hi guys and welcome to our latest crowdfunding news blog post – as usual we will be giving you five stories from the crowdfunding world from the sharing economy is unfazed by Brexit to looking at crowdfunding and the blockchain. Missed our previous crowdfunding news round-up? If so, catch up here.

The Sharing Economy Is Unfazed By Brexit

Brexit

The UK’s sharing economy could boom to 20 times its worth in just 10 years, according to PwC. (City A.M., June, 2016)

The sharing economy sector here in the UK, which includes the likes of Kickstarter, Uber, Spotify, etc. is currently worth around £7bn.

PwC revealed that the sharing economy industry could see a 20-fold increase in growth by 2025.

Economists at the audit firm mentioned that even though the UK has voted to leave the European Union, the sharing economy’s vast expansion should still be on track.

The fundamental drivers of the sharing economy e.g. technological advancements, demographic change and urbanisation will continue over the long term which is great news for start-ups and as the old saying goes, sharing is caring, and the sharing economy is here to stay.

 

Baidu Adds Strict Requirements For Chinese Crowdfunding Platforms

China P2P

From the UK to now moving east to China, Chinese search engine Baidu last month announced it would now require crowdfunding platforms to abide to a strict set of qualifications designed to limit promotion from less reputable sites. Baidu mentioned it would no longer open new accounts for crowdfunding platforms to access their “pay for performance” networks unless they were approved (as mentioned in Crowdfund Insider).

If a platform fails to meet the necessary requirements Baidu have stressed that they will remove full access of their promotional services.

This is really good to see, as regulations in this particular world have been questioned for having a lack of strict rules in place.

Chinese crowdfunding platform Baichouhui’s co-founder Chang Zongfeng mentioned in China News/Crowdfund Insider that It’s good that Baidu has added strict regulations, which will benefit the industry in the long term. In addition, he mentioned that equity crowdfunding should have more stringent requirements for investors as it’s riskier than crowdfunding ordinary projects of lower value.

China is known for its vast amount of crowdfunding platforms, it has been reported that the Asian country has 400 crowdfunding platforms as of Q1 of 2016. Moreover, the volume of crowdfunding in China has been estimated to be around 3 billion yuan (about USD $448 million).

 

Finnish Fintech Pioneer Scores €1.2m To Finance Its Expansion In UK Market

Finland Crowdfunding

Finnish crowdfunding platform Invesdor has been bullish on the UK market despite the uncertainties of the recent Brexit.

The Finnish fintech pioneers closed a fund raise scoring €1.2m to finance its expansion here in the UK.

Invesdor view the UK as the biggest equity crowdfunding market in Europe and say that the fundraise represents an important milestone for their development strategy.

Co-founder and CEO Lasse Mäkelä mentioned in Alfi that : “There are interesting times ahead of us in European equity crowdfunding, and our investors seem to think so, too. Lately, it has seemed like new competitors are popping up everywhere you look.”

Mäkelä senses that the equity crowdfunding market might be moving towards a period of consolidation and believes that a time of mergers and acquisitions for platforms is on the cards.

 

Blockchain & Crowdfunding

blockchain crowdfunding

A new era of crowdfunding has been revealed from using blockchain technology. CCEDK, a crypto exchange from Denmark which has recently rebranded itself. They recently came up with an idea that they could serve its customers better by acting not primarily as an exchange, but as a gateway into the world of the blockchain.

So how does this work exactly? In a nutshell, crowdfunding over the blockchain enables ordinary people to access investment opportunities that they would never otherwise even see. The exciting feature of crowdfunding with cryptocurrency is that it allows the investor to trade their investment immediately on the trading platform OpenLedger. (Forbes, June 2016)

OpenLedger therefore offers third parties to hold an amount on a specific account in a short period of time in order to further the use for funds, providing an administrative and legal hub for investors.

The beauty of using blockchain technology is that it encompasses :- security (no one can freeze, seize, hack or attack your wealth and your identity can never be stolen; secondly, acceptance (you can spend your money instantly and anywhere where major debit cards are accepted); thirdly, privacy (only those you authorise can see your accounts). Lastly, accountability, having signature accounts which allows to share control of accounts with friends, family, and business associates.

As a whole, these form the Decentralised Conglomerate ecosystem, which is basically designed to boost the chances of success for entrepreneurs, whilst at the same time rewards its own stakeholders. Alignment of interests and incentives is imperative for the sharing economy.

Read more on this fascinating concept here.

 

Crowdfunding : One Of The Biggest Fintech Developments Of 2016

Crowdfunding News Crowdfunding Finland

Fintech – a buzzword you hear a lot these days, has seen significant expansion with no signs of slowing down as it continues to transform finance.

Besides the likes of big data, cloud computing, and payment innovation, crowdfunding has as risen to prominence in recent years.

From looking at the Massolution Crowdfunding Industry 2015 Report, the crowdfunding industry is worth $34 billion and could continue to grow to $96 billion by 2020.

Ali Ramadan from Bird & Bird mentioned in a recent Wired article on crowdfunding : “It’s another example of disruptive technology changing the status quo in equity and financial services when it comes to access to capital”, he explains. “One of the main reasons we are seeing business turn to crowdfunding is because of the potential to raise funds quickly and with less stringent terms than those which may be imposed by investors outside of a platform”.

Want to know more about crowdfunding? If so, check out our crowdfunding process page.

 

What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

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The Latest P2P News – 20/6/16

P2P News – All The Latest Updates

 

Hi guys welcome to another edition of our P2P news blog. This week we start our news update by looking at the alternative finance challenges in mainstream lending for the SME market to focusing on the protection that P2P investors need. Missed our very first P2P round-up? If so, click here.

 

One In Six SME Owners Seeking Finance Say They Have Been Turned Down By A Mainstream Lender

SMEs P2P

Leading specialist lender Amicus conducted a study recently and found out that one in six (16%) SME owners seeking finance say they have been turned down by a mainstream lender (such as a high street bank).

Nearly a third of SME owners stated in the research that their inability to secure finance terms with a mainstream lender meant they had lost out on a business deal or investment opportunity. Because of this, SMEs have gained an interest in alternative finance – including forms such as property finance, crowdsourcing, invoice finance, asset finance and P2P lending.

Just over half of the SME owners that took part in the research believe that the huge amount of flexibility that alternative finance offers, is more appealing for SMEs to use, the number is up from 45% in 2015.

The respondents’ views on alternative finance included :- greater ability to lend (46%) was second and longer payment terms (34%) was third. Speed (30%), specialist knowledge of their clients’ industries and challenges (29%) and more compelling payment structures (27%) was ranked fourth, fifth and sixth respectively. (Stats taken from Finextra)

Over half of the respondents said they have already used alternative finance or considered using it.

Image source : Business Europe

Online Lenders Hit Back At The Deloitte Report

P2P Deloitte

Deloitte recently released quite a brutal report on marketplace lending, predicting that it will not pose a threat to the mass market or to banks or that it will be significant.

Those in the industry were quick to hit back at Deloitte’s reports. For example, Assetz Capital CEO Stuart Law shared his views on Business Insider saying that : “When a system fails, like the banking system in 2008, new entrants will emerge to correct the mistakes. We’ve seen a huge growth in the peer-to-peer finance sector because of that failure, and it’s no surprise that questions are being asked over how banks and Peer to Peer will sit together in the future.”

He also went on to say that he sees no reason why banks and peer-to-peer lenders can’t operate side by side as they are not addressing exactly the same markets.Last year his company and RBS announced a partnership whereby if RBS was unable to provide a business with a loan, it would pass the relevant details to Assetz Capital, which will work with the business to develop an appropriate loan package to suit both peer-to-peer investors and the business.

Deloitte’s report also states that P2P is more expensive than banks and whilst that may be true for some platforms, however, the likes of Assetz Capital are very competitive against challenger banks due to having a  low cost of funding and are expected to become more and more so with the introduction of the new Innovative Finance ISA (IFISA).

Read more industry opinions here.

Image source : Linc inc

Indian P2P Platforms Look At Blockchain Technology

India Blockchain

P2P companies in India (Faircent, Micrograam and i-lend) are looking at exploring blockchain technology in order to increase transparency levels.

India’s economictimes.com reported that these start-ups aim to serve as a “ledger system” to automate and record transactions on their platform. However, they have to wait for approval from the Reserve Bank of India for integrating the technology into their systems.

Micrograam’s founder, Rangan Varadan told Econotimes : “This can be done without the use of cryptocurrency. This could be a transformational tool in doing payment transactions.”

The Reserve Bank of India released a consultation paper that mentioned that P2P platforms in the country cannot directly engage in money transactions between the lender and the borrower, once the credit underwriting process has been conducted.

A fintech report by Nasscom and KPMG stated that there is huge scope in understanding the potential of blockchain technology in managing p2p remittances in the Asian country.

New to blockchain technology? If so, watch the video below.

 

China’s P2P Lending Faces A Regulatory Shakeup

China P2P

 

Staying in Asia, we now look at P2P in China (in our first P2P blog we also looked at Chinese P2P – view here), in a recent video spotted on Yahoo Finance, Lufax CEO Gregg Gibb enlightens CNBC viewers in a brief interview that there are thousands of P2P lenders out there in China and that from day one there has been a few practises that haven’t been right and as a result regulator pressure is coming in as there is a large need for borrowing, investing, and what working out is becoming to be clear.

Gibb stressed that a high level of transparency needs to go up and as soon as you create transparency, regulation becomes more easier. The CNBC news interviewer questioned Lufax’s transparency efforts, he told her that they make it very clear to every investor what they are investing in, who the money is going to and also to make it clear about the contractual relationship. Moreover, he mentions about the importance of using tools – e.g. to show how to rate and measure something. To sum it up, he says that it is all about the transparency aspect in P2P.

Although there isn’t a “one size fits all” approach to P2P, in my opinion China can look at The UK when it comes to P2P, over here, P2P companies have to record all transactions (the above example of Indian companies using blockchain would be good for companies around the world), as well as submitting full loan books and the performance of investment returns.

Watch the CNBC interview here.

 

P2P Investors Need More Protection

P2P protection

 

Andrew Tyrie, who chairs the Treasury Select Committee has stressed for the need for more protection for P2P investors.

Mr Tyrie challenged lenders’ systems of checking creditworthiness and asked how peer-to-peer lenders made sure they were getting accurate information about the risks. (Telegraph, June, 2016).

In a letter which he sent to thee Financial Conduct Authority (FCA), he stated : “Whether, and if so to what extent, investors would benefit from stronger consumer protection now needs careful thought. Poorly informed investors may be left with a false sense of security about the balance of risks versus returns.” (Telegraph, June, 2016)

Since April this year, P2P lenders have been allowed to offer their products inside an ISA.

The issue here is that there are a lot of lenders out there that are yet to be fully regulated by the FCA.

Christine Farnish, who chairs the Peer-to-Peer Finance Association, replied back saying that P2P websites are audited frequently, plus all members are required to publish in full the details of their loan books to ensure that investors are able to hold platforms to account on credit assessment.

As mentioned in the above news item and looking at the previous paragraph, there is a high amount of transparency in the P2P industry in the UK, however, it clearly shows that there needs to have more regulations set in stone, especially from the consumer side. Read more on the topic here.

What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

The Latest P2P News – 18/5/16

P2P News – All The Latest Updates

Hi guys and welcome to our very first P2P news blog, just like our property and crowdfunding news blogs we will be giving you a quick snapshot featuring five top stories. Today we look at an array of interesting topics from UK lenders say P2P is safe to looking at some key takeaways from the industry so far.

 

P2P is ‘Safe’, Say UK Lenders

P2P News P2P Lending

 

UK P2P lenders have reassured investors that they are safe despite the calls for tighter regulations.

The P2P industry — in a nutshell involves matching borrowers directly with lenders online — was thrown into the spotlight last week when a high-profile US lender’s chief executive resigned.

Lending Club’s founder Renaud Laplanche, stepped down from his position following an internal probe over allegedly mis-sold loans according to the FT.

As a result UK lenders were keen to distance themselves from the P2P company and also pointed out that regulations involving lenders in the UK differs from the regulations for their U.S. counterparts.

The big difference between the UK and The U.S. is that the UK regulations were written specifically for P2P lenders. In contrast, U.S. lenders follow rules devised before peer-to-peer lending existed as FT’s Aime Williams points out in her article (link below).

P2P in the UK is also known for being very transparent, the industry body for UK p2p lenders, the P2PFA, noted that its members publish their loan books.

In addition P2PFA members follow a number of agreements to enhance transparency levels, including publishing bad debt rates and five years of credit performance, as well as a returns performance and submitting full loan books.

However, some have mentioned that things should go further. For example, Chief executive of AltFi Data, Rupert Taylor told the FT : “People recognise the benefits of transparency, but there’s more that can be done.”

You can read more on this topic here.

 

China : The Red Dragon Reins in P2P Lending

P2P News China

China is tightening its grip on a surge of peer-to-peer (P2P) lending amid a string of mismanagement and fraud in the lightly regulated sector. (The Straits Times, May, 2016)

The point of doing this is to limit the potential instability these lenders might pose to the country’s wider economy and society.

In recent years there has been a surge in P2P lenders in China, mainly from websites that connect borrowers to lenders and according to Chinese data company Wind Information, there were 2,600 platforms at the end of last year.

Lending hit over 980 billion yuan last year, soaring from 253 billion yuan in 2014, making China’s P2P market the largest in the world.

 


Lendix Raises $13.5 million To Become Leading European P2P Platform

P2P News Lendix

The French startup has raised $13.5 million (€12 million) and now wants to become one of the leading European P2P lending platforms.

Lendix was launched last year and in it’s first year has managed €20 million worth of medium-term business loans. According to Tech Crunch, Lendix manages loans for small and medium companies for 3 to 6 years with annual returns between 4 and 9 percent for the lenders.

Lendix is going to expand to other European countries now they have taken the French market by storm, they plan to get involved with the Spanish and Italian markets respectively in the coming months. For each European expansion, the French startup has to work on getting a license to operate on these new markets. In addition, Rules can be slightly different as well. It’s a long and bureaucratic process, however, it is a good barrier to entry for foreign competitors.

You can read more about Lendix here.

Image source : Lendix

 

Why Banks Should Be Offering More P2P & Bitcoin Services For SMEs

P2P News Banks

Banks are facing “stiff competition” from fintechs, and should be offering more “value-added products”, such as peer-to-peer lending, bitcoin and cloud services according to Accenture’s SME Banking 2020 report.

They found there is a clear appetite among many SMEs for these value-added services and this currently represents a missed opportunity. Their data indicated that banks could be generating £1.6bn a year more in revenue from these services, representing potentially £8.5bn by 2020.

Gareth Wilson, Accenture banking practice lead for the UK and Ireland told City A.M. : “SMEs want banks to be more relevant and provide a wider range of business services”.

Moreover, he stressed that banks need to recognise and seize this opportunity. Unless they do, SMEs may take their business elsewhere and look for alternatives.

 

P2P Takeaways

P2P News

Lastly, here are some key P2P takeaways :

  • The P2P lending industry is seeing significant growth, especially in developed countries with strong financial markets. P2P lenders in the US generated $6.6 billion in loans last year, up 128%.
  • Europe is the next big market for P2P lending: The alternative finance market in Europe reached nearly €3 billion ($3.9 billion) in 2014, a 144% jump, and small-business P2P loan volume in France grew almost 4,000% last year, to reach €8.2 million ($10.6 million).
  • The US has one of the largest P2P lending markets in the world by loan volume, but the UK’s is 72% larger on a per capita basis. Low consumer confidence in banks (even before the financial crisis), a high degree of comfort with online platforms, and a positive regulatory environment have all helped nurture the UK’s P2P lending market.

Stats taken from Tech Insider.

What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

The Latest Crowdfunding News – 20/1/16

Crowdfunding News – All The Latest Updates

Hi guys and welcome to our fortnightly crowdfunding news edition, as usual we will be covering an array of interesting crowdfunding topics from the UK and around the globe. If you missed our last edition, you can catch up here.

 

Corbyn To Donate ‘Dream Bike’ Crowdfunding Money To Charity

Corbyn Bike

Last week we read about that Corbynistas raised money so Jeremy could have his dream bike, a Raleigh Criterium.

His supporters raised £6,000 with over 200 people taking part in the crowdfunding campaign. While the initial idea was to purchase the bike for Corbyn, the MP for Islington North told the Independent on Sunday he will give the crowdfunded donation to charity.

Corbyn mentioned that he would purchase the bike with his own money as a 67th birthday treat, so it looks like he’ll running around for a bit until the end of May!

He has not stated on which charity that the crowdfunding money will go to, but Ian Jordan (who set up the crowdfunding campaign) has suggested it would go to Calais Action – a cause that Corbyn has shown a lot of support to recently.

 

London Cabbies Set Up £600,000 Crowdfunding Campaign For Anti-Uber Legal Bid

London Cabs Crowdfunding

A London cab driver’s wife has launched a £600,000 crowdfunding campaign to take on cab-hailing app Uber’s license in the courts. (The Evening Standard, January 2016)

Artemis Mercer’s Action for Cabbies group is seeking a judicial review of the licence granted to the company in 2012 by Transport for London (TfL).

Mercer claims claims that TfL have failed to enforce the law on the likes of background checks and disabled access.

Her Action for Cabbies group said that the issue had to be taken in a radical way to save the black cab drivers and the future of the black cab trade.

She said: “When Transport for London granted Uber a license in 2012, it became a law maker instead of the law enforcer it should be.” (The Evening Standard, January 2016)

The app has shaken up the city’s taxi service since it was launched and has led to many protests by black cab drivers.

Last year, the Licensed Taxi Drivers’ Association received bad news when a High Court judge dismissed their claim that the transportation app was breaking the law in the way it calculates fares.

Artemis Mercer hit back saying “When you travel in a black cab, your driver has invested three to four years in training at their own expense – that’s why black cabs are voted the best taxi service in the world”.

If this is something that you also feel passionate about, click here to find out more.

 

Equity Crowdfunding Platform Crowdcube Targets The Northern Powerhouse

Crowdcube Manchester

Crowdcube is set to open a new office in central Manchester which opens in February. The new Manchester branch will make it easier for local young businesses to obtain finance by using equity crowdfunding over traditional sources. (MEN, January, 2016)

The company’s commercial director Matt Cooper told MEN that they are determined to to put Crowdcube at the heart of the creation of the Northern powerhouse.

He also mentioned that they already have a very vibrant investor community in the north and that there is definitely an exciting opportunity to take the North West start-up scene to the next level.

Ideas Britain CEO Adam Shaw stated in MEN that “Having a top-notch crowdfunding platform in place to support Manchester brings a new dimension of potential for the city’s entrepreneurs, and it’ll help to keep momentum flowing in a region that’s already synonymous with innovation and big ideas.” (MEN, January, 2016)

Does the Northern Powerhouse interest you? If so, why not take a look at our very own Manchester guides (North and Central).

 

China Crowdfunding Platforms Raised $1.7B In 2015

China Crowdfunding

Even though China’s economy grew by 6.9% last year (its slowest growth in a quarter of a century), according to China Money Network, a total of RMB11.4 billion (US$1.7 billion) have been raised via crowdfunding platforms in China in 2015, up over four times compared to the year before.

However, according to Chinese P2P platform Wangdaizhijia.com the number is only a quarter of the RMB49.5 billion (US$7.5 billion) that was expected to be raised for the year.

What was interesting to see from the data was that an aggregate of 49,242 projects sought to raise money on crowdfunding platforms in China last year, of which around 69% are reward-based crowdfunding, while charity crowdfunding and equity crowdfunding each took 15%.

The reports forecasts that equity crowdfunding will enter a rapid growth period, while reward-based crowdfunding will become a new model for Chinese consumers going forward.

 

Crowdfunding Site Indiegogo Announces Its Intention To Work More Closely With The World’s Biggest Corporations

Indiegogo Big Companies

Known for helping smaller scale businesses out, Indiegogo has revealed it wants to help the world’s biggest corporations and crowdfund their own research ideas and get customers to vote with their wallets on which to develop by pledging cash to back their favourites.

Indiegogo said that firms would be able to ask its users to suggest ideas for which it could then seek financial backing and input from potential customers. They could also put out their own projects to gauge the potential market and attract funding and would receive promotional and strategic support from Indiegogo staff, it said. (BBC, January, 2016).

The crowdfunding site stated that their programme was open only to Fortune 1000 and Global 500 companies.

Duncan McCann, a researcher at the New Economics Foundation makes an interesting point about the big players who are entering Indiegogo’s programme. “What you get is the established players moving in once people are comfortable with the concept. It will be interesting to see how it plays out. Will we see people going to other platforms?” (BBC, January, 2016).

His major concern is not so much that big players have a way of doing or achieving something smarter, but more to do with the fact that it could drive out the real entrepreneurs who will be the real future engines of the economy as he puts it.

He goes on to say that Customer loyalty these days is disappearing, so engaging people with products is a huge benefit. The big players really can’t lose.

Image Source : Indiegogo 

 

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