The Latest Crowdfunding News – 27/4/16

Crowdfunding News – All The Latest Updates

Hi guys and welcome to another fortnightly edition of the latest crowdfunding news from the UK and around the world. Today we start our crowdfunding journey from looking at a government backed crowdfunding scheme for cultural organisations to ending our trip on a golf course in Scotland! If you missed our last crowdfunding news round-up, catch up here.


Government To Pilot Crowdfunding Scheme For Cultural Organisations

The Culture White Paper

The Government has announced that it is to pilot a crowdfunding scheme to promote use of the model by cultural organisations. (UK Fundraising, April 2016)

The pilot scheme was mentioned in the government’s white paper for culture which was launched by Minister for Culture Ed Vaizey last month. The white paper for culture focuses on two specific areas, 1) to focus on increasing participation in culture and 2) helping cultural organisations secure funding from sources other than public funding.

The white paper mentions that the Government will launch a new pilot scheme in partnership with the National Endowment for Science, Technology and the Arts, Arts Council England and the Heritage Lottery Fund and will use crowdfunding as a tool for funding cultural projects.

According to the paper, donation-based crowdfunding grew the fastest among all alternative finance models in 2015, with a 507 per cent year-on-year growth rate and £12 million distributed. (UK Fundraising, April 2016)

Image source : UK Fundraising


Australian Crowdfunding Bill Fails

Australia Crowdfunding

We’ve previously mentioned about Australian crowdfunding on past crowdfunding news blog posts (in one of our posts from March we looked at crowdfunding legislation for start-ups).

In addtion, in our March blog post we looked at new legislation that allows unlisted public companies to raise money through crowdfunding from mum and dad investors which was approved by the lower house.

However, the Crowd-Sourced Funding bill, Australia’s push for a legislative update for investment crowdfunding regulations, has silently died in the Aussie Senate as mentioned in a recent Crowdfund Insider article.

Tom Nockolds from the Community Power Agency who was part of approving the legislation process mentioned in Crowdfund Insider : “If the legislation had passed in its proposed form, there would have been a lot of backslapping within government saying, isn’t it wonderful we’ve solved the crowd-sourced equity funding problem and we don’t have to address that anymore, when actually it would have only been half the job done at most.”

It seems for now that regulations will take a back seat as the Australian government focuses on policy initiatives based on the country’s fintech scene.


World’s Most Crowdfunded Restaurant Opens In Manchester

Chilango Manchester

From leaving the southern hemisphere to now travelling back to sunny Manchester for some Mexican food!

The London-born Mexican eatery Chilango has opened its 11th UK restaurant in Manchester’s Oxford Street after raising £3.4m from crowdfunding.

The Mexican eatery was created by Chicago-born Eric Partaker, and travel enthusiast Dan Houghton; a pair of passionate entrepreneurs who had an idea and watched their business grow rapidly.

Partaker told Business Quarter : “We’ve been desperate to expand our brand across the UK for some time now, and Manchester was the natural move up into the north for us.”

He also mentioned that Manchester was a perfect place for the brand as it has a fantastic buzz just like their Mexican restaurant.

At The House Crowd, unfortunately we can’t help you crowdfund your very own restaurant, however, we can offer you some handy Manchester guides (North and Central).

Image source : Business Quarter


More People Turning To Crowdfunding To Cover Trips Abroad In U.S.

Crowdfunding Travel

A recent survey from GoFundMe showed that there has been an increase in people using their site to help them raise money to go on trips. Six years ago, there were 135 campaigns with the goal of going abroad. Last year, there were more than 130,000.

Laniya Hooks, a senior in high school, is one of the people turning to crowdfunding to raise money for a trip to Europe. She is going to Spain, France and Italy. It’s a 19 day adventure with People to People where she will meet others abroad, help them and learn about their cultures. (WIVB, April 2016)

She decided to go on her trip a few months back, however, her father and grandmother passed away suddenly, which left the family with a lot of financial difficulties.

The 17 year old student from Buffalo decided to use crowdfunding to help her fund her trip.

Hooks told WIVB : “It’s kind of intriguing to me to see how people will help somebody they don’t even know achieve their dream, “I think it’s cool that people are helping. I chose GoFundMe because — I’ve never used it before — but I saw it work for somebody else so I thought well maybe I will give it a try and see what it’s like.”

The Buffalo student has so far raised $300, her goal is to reach $2900. If you want to help Laniya fund her trip, get involved here.


The UK’s Most Western Golf Club Turns To Crowdfunding

Golf Scotland Crowdfunding

One for all you golf lovers out there! The UK’s most westerly golf course, Barra Golf Club, on the west coast of the Isle of Barra, in the western isles of Scotland, has turned to the internet in an attempt to raise about £30,000 for a much-needed clubhouse. (Golf Club Management, April, 2016)

The club was formed in the early 90’s and is run with little financial support, other than membership fees and an honesty box. A few months back, the second green collapsed due to erosion. In addition, the nine-hole course that overlooks the Atlantic Ocean provides no shelter for players.

Club volunteers need help to fund a small clubhouse which will provide warmth and shelter, a kitchen, WC facilities and storage. Funding for the clubhouse will also help youngsters who are keen golfers on the island. Club captain Murdoch MacKinnon mentioned in Golf Club Management : “These youngsters are the future of the club. If we don’t get some kind of clubhouse built, I fear it will close and that would be a huge shame and a big loss to the island.”

Last year in Germany, a golf club raised €500,000 from crowdfunding which helped expand its facilities.

Have an interest in golf and crowdfunding want to help the Barra Golf Club? If so, get involved here.

Image source : Crowdfunder



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. 

Register Now For More Information

Property News Round-up 23/3/16

Property News All The Latest Updates


Hi guys welcome to our fortnightly property news blog, as usual we will be taking a look at the latest domestic news and will be taking a look back at last week’s budget to taking a tour of a fairy tale castle in Greater Manchester – can you guess the property’s price tag? If you missed our previous property news round-up catch up here.


Budget 2016: What It Means For The Property Industry

George Osborne Budget 2016

Last week George Osborne made a number of announcements in his 2016 Budget that will affect the property industry here in the UK.

The chancellor, (as quite a few were expecting) did not take a u-turn with regards to the additional stamp duty rate. So what does this mean exactly? In a nutshell, it means an extra 3% levy on top of normal stamp duty rates if you buy multiple properties.

In addition, he also scrapped the “slab” system for tax rates on commercial property purchases. According to the IBT, the reform now works like income tax, with the rate only applied to the portion of the property price that falls into its bracket. He also raised rates in the top price brackets and cut them at the lower end. Moreover, only 9% of commercial property purchasers will pay more.

Mr. Osborne also cut Capital Gains Tax (CGT) rates. On the day it was announced that the higher rate will reduce from 28% to 20% and the basic rate from 18% to 10%. If you’re thinking there has to be a catch there, you’ve hit the nail on the head. The catch is the former rates will still apply for sales of residential property. It’s worth noting that Capital Gains Tax is not applied to profit made on your own home. However, if you own any additional properties then CGT does apply to you. This is bad news if you are a landlord as you will be penalised if you decide to sell. This doesn’t apply to all types of property investors. For example, people who have invested via funds will benefit from lower CGT rates on the profits they make.

On the day it was also revealed that property developers must pay tax on their profits. In addition, the HM Revenue and Customs will bring together a task force for targeting offshore developers in the UK. It has been reported so far that the tax office has identified 100 “high risk” developments.

The government stated in the budget that it will work closely with local councils to identify where they can be given more “planning freedoms” to ensure thousands of new homes are built. Additional financial support will be given to councils that plan to build houses on the outskirts of towns and cities (aka garden villages) which consist of 1,500 to 10,000 homes.

Lastly, it was announced that money will be going to the homeless. Osbourne’s budget said that £115m being put towards helping rough sleepers. The majority of the homeless spending will go towards low-cost ‘second stage’ accommodation. However, while many homelessness charities welcomed the government funding, they stressed that the problems run far deeper than a shortage of money.

What are your thoughts on the budget? What other changes would have you liked to have seen Mr. Osborne include on the day?

Image Source : Liverpool Echo

Northern Cities Are Among The Best Places To Invest In Property

Liverpool Property Invest

Northern cities are the hottest up-and-coming areas for UK property investors, according to data released today on affordable homes. (City AM, March 2016)

Research from Which? shows that where property prices are surging, thaey also have an average house price below £200,000.

Liverpool’s city centre takes the top spot for when it comes to affordability. Land Registry data indicates that the average home in the L1 postcode still costs just £120,000 despite house prices increasing 41 per cent over the past year.

Other areas that have seen strong price rises but remain affordable include Bradford’s BD1 postcode which is east of the city’s university.

Manchester’s M12 postcode came fifth on the affordable list with an average house price of £98,000, the area is cheaper than Liverpool’s central district, however prices rises from this postcode have not been as dramatic, rising at 32 per cent.

Are you interested in investing in the north? If so why not check out our guides on Manchester (North and Central) and also our South Yorkshire guide.


Property Prices In Manchester Increased Over 30% In 2015

North of England Property Invest

Staying in the north and looking at property prices a little bit more closer to home (part two of the above if you like), Salford’s M5 postcode recorded the region’s highest rises, with the average value of £127,890 representing growth of 34% in just 12 months.

As Select Property Group mention in one of their recent articles, 2015 was a year in which Manchester firmly established itself as a property investment hotspot. It was named by HSBC as the UK’s number one city for yields, with rental rates being driven by one of the lowest levels of housing supply and a population growing at three times the national average.

Investors have started to whet their appetite when it comes to investing in Manchester due to the fact it has one of the country’s youngest populations, with 60% more 25 to 29-year-olds living in the city. The millennial generation (aka Generation Y) are known for renting and with a vast amount of graduates and others relocating for jobs, Manchester is currently a prime place for property investors.


London Property Prices Rose Almost £500 A Day In January

London Property Prices

Moving from the north to travelling ‘down sarf’- London house prices increased by almost £500 a day in January, according to government figures that provide fresh evidence of a “two-speed” property market. (Guardian, March 2016).

Data from the ONS (office for National Statistics) indicates that London and the South East are still dominating and continue to power ahead with double-digit annual growth rates. In contrast, in other regions of the UK such as in Wales, Scotland and Northern Ireland figures appear to have stuttered to a halt.

According to the ONS, The average London house price hit a record £551,000. This was £15,000 up on December’s figure of £536,000 and an increase of £484 a day.

Dragonfly Property Finance’s managing director Mark Posniak told The Guardian : “This latest annual house price data once again throws into sharp relief the contrast between the housing markets of England, Wales, Scotland and Northern Ireland. They may be geographical neighbours but they could be thousands of miles apart in terms of house prices.”


Fairy Tale ‘Castle’ In Greater Manchester – Can You Guess Its Price Tag?

Manchester Castle

Want to become lord or lady of the manor? Here’s your chance (if you’ve got a LOT of spare cash lying around that is!) Wharmton Tower, in Grasscroft (Oldham) has eleven bedrooms, a separate coach house and even a stone-built summer house – and is just a short drive from Manchester!

Grasscoft has some well-known residents such as Paul Scholes and Dr. Brian Cox and is ideal for those who love to live in a relaxed and quiet surrounding. BUT to live this life of luxury how much will it cost you?


How Much Does The Fairy Tale ‘Castle’ In Greater Manchester Cost? free polls

Image Source : Manchester Evening News

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. 

Register Now For More Information

The Chancellor’s announcement and how it affects property investors…

George Osborne announced yesterday the introduction of a government-backed mortgage lender guarantee in order to help house hunters who are struggling to find a deposit.

The guarantee will provide up to £130bn of lending between 2014 and 2017 in order to encourage lenders to provide high loan-to-value mortgages. It could continue to run beyond this with the Bank of England’s agreement.

This will undoubtedly give a boost to property prices especially in the areas The House Crowd are buying – these are the poorer areas where people are least able to raise a 20% deposit. That’s good news in that it will give us better capital gains and make it easier to sell properties. Conversely, it will also make it harder to buy property after 2013 that will achieve double digit yields.

It is therefore our intention to capitalize on this announcement and buy as many properties as we possibly can in the next 12 months. If you want to maximize your returns, then the next few months presents the best opportunity for you to do so.

The value of property revival

At a time when high-street shops are struggling more than ever, it is a welcoming relief to learn that the Government, following on from Mary Portas’s High Street Review, will be implementing a number of high street – Town Team pilots across England to further support regeneration.

Earlier this summer it was announced that twenty-seven town centres across the country, including Morecambe and Stockport, would receive a slice of a £2.7million budget and a tailored package of support for rejuvenation from both the Housing Minister and celebrity retail guru, Mary Portas, as part of the Portas Pilots.

Towns which missed out on the Portas Pilot competition are still able to apply for a new package of support, which includes multi-million pound financial incentives from the Government and access to advice and support from leading retail experts. In addition, those towns which succeed in regenerating their high streets can apply to be considered for the Future High Street X-Fund and potentially win a share of the £1million prize on offer.

The value of such initiatives cannot be underestimated from a property perspective. Breathing life back into rundown town centres not only increases the aesthetic appeal of an area, but also attracts further development, transport investment and leisure facilities – all of which are central to property value. Here’s hoping the numerous incentives on offer for an entrepreneurial approach to town centre rejuvenation can be the turning point in fortunes for high streets across the country.

At The House Crowd we use our expertise to look beyond the current state of a rundown property and consider what it can become with our investment. Informed property selection, followed by shrewd refurbishment, allows us to offer investors a typical return of 12%-14% in approximately 6 months on our short term develop and sell projects.