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

Property News Round-up 6/4/16

Property News All The Latest Updates

 

Hi guys and welcome to another fortnightly property news round-up, today we once again take a look at the latest goings-on in UK property from the north-south house price divide to looking at Ringo Starr’s childhood home in Liverpool – one for you Beatles fans out there!

 

North-South House Price Divide Continues

uk property map

 

House prices in northern England are now less than half those in the south of the country, according to the Nationwide – a new record. (BBC, April 2016)

In the north, on average a property is worth nearly £163,000 less than one in the South.

Stats from Nationwide show that in the first quarter of 2016 prices in Southern England rose by 9.9% year-on-year, compared to just 1.8% in the North.

In addition Nationwide mentioned from their research that property prices were picking up, from the start of the year to March, house price inflation across the country hit 5.7% – up from 4.8% in February and the fastest rate for more than a year.

The building society mentioned that main reason centred around the increase was predominately linked to landlords rushing to buy property ahead of Stamp Duty increases.

Their stats show that property prices are rising the fastest in the London suburbs (an annual change of 12.2%), in contrast, Scotland and the north had an annual change of 0.2% and 1.1% respectively. Click here to view the full list of regional house prices here.

Are you looking for an alternative when it comes to property investing? Why not check out latest regional investments here.

 

Property prices Soar By 47,000 % In The 90 Years Since The Queen Was Born

Queen Property

National Statistics (ONS) and data from Jackson-Stops & Staff found out that between 1926 and the outbreak of the Second World War in 1939, average UK house prices rose by only £40, to £659, a rise of 6.5 per cent. (City A.M., April 2016)

However, by the early 50’s property prices in the country had jumped more than threefold to £2,006. By 1966 (what a glorious year that was! ?) house prices were over £3,000. In the 70’s, prices rose by 331 per cent to £12,704, rising to £36,276 in 1986, by the mid 90’s prices had doubled to £69,889.

According to Jackson-Stops & Staff’s calculations, if prices continue to rise at the same rate as they have in the last two decades, the average property will cost £1.3m when Prince Charles celebrates his 90th birthday in 2038, and £11.3m when Prince William reaches the same age in 2072.

For further reading you can view City A.M.’s article here.

 

Two In Five Of Us Look Up The Prices Of Homes Owned By Friends & Family

nosey neighbour

 

It seems that snooping up on our neighbours is nothing new and has evolved with the digital age.

More than 38 per cent of Britons have checked the price of someone else’s home online in the past year – including the properties of neighbours, family and friends – according to the findings by insurer Direct Line. (This Is Money, April 2016)

The research showed that out of the 19 million Brits who have looked up someone’s home, 52 per cent looked at their neighbours’ homes online, 38 per cent look at their family’s homes and 31 per cent at friends’ houses, now that’s a lot of snooping if you ask me!

In addition, Direct Line’s research showed that 10 per cent of people look online at the homes of their colleagues.

Head of Direct Line Home Insurance, Katie Lomas told This Is Money : “We are a nation of property obsessives with very good reason. Our homes are our castles and becoming a homeowner or even climbing the ladder in the UK is a huge challenge and aspiration for many.”

 

 

To Millennials Caught In The Rent Trap, The Panama Papers Matter

Iceland Panama Papers

As The Guardian’s Kate Lyons mentioned in her article yesterday, the Panama papers is the largest leak in journalistic history and the papers have led to the ramifications of the Icelandic PM Sigmundur Davíð Gunnlaugsson to resign after being accused of hiding millions in an offshore account.

So how does this link to millennials? For Generation Y, they are particularly frustrated with the political and economic status quo as well as the unjust activities of the rich that have been revealed from the Panama papers.

In a country where a lot of the millennial generation cannot afford to get onto the property ladder, the fact that thousands of properties are bought through tax haven-based companies, by people who are already wealthy enough to restructure their finances to take advantage of tax havens in tropical islands really matters to young people.

Home ownership is sadly out of reach for most young people in the UK, something that has been known and reported for a long time, we even conducted research on the matter back in October (which you can view here) – a sobering stat that we uncovered was that a quarter of under 30’s say they need someone to die before they can afford to buy a property.

This is where there is a link with the Panama papers. We know from recent reports just how much property is owned by companies linked with Mossack Fonseca and we can see the direct affect it is having with young people.

When turning on Sky News yesterday evening and heard about the news, being a millennial myself, I wasn’t surprised about what had happened. Hearing about the rich putting offshore money in tropical paradises such as the Cayman Islands and the British Virgin Islands to keep themselves even more wealthy and powerful isn’t new to us at all – however, this way of them finding tax loopholes comes at the expense of others.

Image Source : The Wall Street Journal

 

Childhood Home Of Ringo Starr Sells For £70K

Ringo Starr Liverpool Property

One for all you Beatles fans out there! The childhood home of The Beatles drummer Ringo Starr has been auctioned at the Cavern Club in Liverpool.

The terrace house with two bedrooms at 10 Admiral Grove in Toxteth and was where the former Beatle lived as a small child and until he was 21.

The Liverpool property had a guide price of just £55,000 ($78,000) and reveals the humble beginnings of the Beatles drummer.

Ringo’s childhood home was bought at auction for £70,000 by Jackie Holmes from London. She has previously bought the house of John Lennon’s mother in Allerton last April and George Harrison’s home in Speke the year before.

Unfortunately at The House Crowd we can’t help you invest in your favourite band’s former home BUT we can offer you some handy guides! If interested, we have guides on Manchester (North and Central) and also our South Yorkshire guide.

 

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 Latest Crowdfunding News – 17/3/16

Crowdfunding News – All The Latest Updates

 

Hi guys and welcome to another fortnightly edition of the latest crowdfunding news. As usual we bring you an array of interesting updates from the crowdfunding world, today we kick things off by looking at Andy Murray backing five UK start-ups to investigating why crowdfunding has become a female founder’s best friend. If you missed our last crowdfunding blog post, feel free to catch up here. We hope you enjoy! ?

 

Murray Backs Five UK Crowdfunding Start-Ups

Andy Murray Investment

Andy Murray has been quite busy this year both on and off the tennis court. The Glasgow born tennis player has invested in start-ups via crowdfunding platform Seedrs.

His investments are with firms Oppo Ice Cream, Commuter Club, Landbay, We Are Colony, and Readbug.

The two-time Grand Slam champion who teamed up with Seedrs last June, invested undisclosed amounts into each start-up company.

London based Oppo Ice cream makes low-calorie ice cream, while Commuter Club offers commuters season tickets as a subscription service.

Fintech company Landbay offers P2P lending on UK buy-to-let mortgages, We Are Colony are a film streaming platform, and Readbug is an app that offers a curated selection of independent magazines.

Seedrs revealed that it has had more than £100m invested on its platform and has funded more than 320 deals to date, and on average raises up to £7m per month. (BBC, February 2016)

Unfortunately at The House Crowd we can’t offer you investments in really cool start-ups but we can offer you the latest property investments – interested? Take a look here.

 

Can Crowdfunding Bring Solar Energy To Small Businesses In The USA?

Solar USA Crowdfunding

Solar energy is one of the fastest growing new industries in the United States, earning a shout out from President Obama at his State of the Union speech. The president noted that it is now a bigger business than coal, and typically pays its workers a higher wage. (The Verge, March 2016)

Wunder Capital, a start-up from Colorado is trying to make it easier than ever before for anyone to invest in the solar-backed-boom.

The start-up company is aiming to fund small, commercial projects which have struggled to grow at the same rate as residential solar and big industrial deployments as The Verge point out in their recent article.

Last week Wunder announced that it will be raising its own funding, three million dollar round of venture capital that will help its team grow and expand into new market areas.

Nicole Litvak, a senior analyst at Greentech Media, thinks the new funding round is a positive sign for Wunder as it continues “working to bridge the disconnect” between early stage commercial projects in need of backing and small-scale investors who are interested in solar power.

Interested in Wunder’s solar concept? Learn more here.

 

Equity Crowdfunding Now Most Active Investor Type in UK

Equity Crowdfunding UK

 

Beauhurst – a data provider on high-growth UK companies released a report titled “The Deal” looks at equity crowdfunding from 2015/2016.

The data provider’s research tracks every fundraising transaction involving high-growth UK companies at seed, venture and growth stage, including many that were not announced by a press release or mentioned in the press according to Crowdfund Insider.

It was revealed that Crowdfunding, led by equity crowdfunding platforms such as Seedrs, Crowdcube, Angels Den, Seedcamp and Collider, have become the dominant investor type in seed-investing.

Moreover, Equity crowdfunding platforms also lead as single investors in venture stage, with Crowdcube (they had the single most prolific equity investor in 2015 with 136 transactions) ahead of Andy Murray’s favourite platform Seedrs.

For those of you who love visual data, we have enclosed Beahurst’s research below.

Beauhurst-Info-on-UK-HIghgrowth-

(Image Source : Crowdfund Insider)

Therese Torris, business strategist, eCommerce and eFinance writer mentions in Crowdfund Insider that across the three stages of investing, equity crowdfunding is now the second most active funder type after private equity firms, far ahead of angel networks and private investment vehicles.

 

Crowdfunding Is No Longer Only An Option For Start-Ups

Crowdfunding News

Crowdfunding is commonly associated with start-ups, however, big businesses are now learning how to deal with outside investors.

For example, the same week the CES 2016 (Consumer Electronics Show) took place (if you don’t know the place that shows off the next best things in tech) Indiegogo launched a new platform called Enterprise Crowdfunding, which in a nutshell provides support to established businesses looking to test the waters with a new product.

Indiegogo provides strategy, support, promotions and analytics for enterprise users, as well as their users who have a track record of taking a gamble on new ideas. (World Finance, March 2016)

However, the main risk (as World Finance’s Callum Glennen quite rightly mentions) for big companies would be a loss of good faith from the crowdfunding community, who may see projects from big companies as a misuse of the system.

We actually have covered this topic in a previous crowdfunding blog post (view here) but seems to be a common topic the crowdfunding world and the main argument here is that high-profile celebrities and companies can fund their own ventures, plus afford to take the hit if their project goes south.

The concern is that it could drive out the real entrepreneurs who will be the real future engines of the economy. On the flipside it can viewed with a well made, open and clear campaign, larger businesses can engage and expand their customer base by operating in a more public and transparent approach.

Which side do you take on this crowdfunding issue?

 

Crowdfunding Is A Female Founder’s Best Friend

Crowdfunding Women

 

At the end of the day no matter who you are, raising funds isn’t easy. As Forbes’ Geri Stengel points out – it’s no secret that women entrepreneurs have an even harder time raising capital from angels, venture capitalists and bankers than their male counterparts. (Forbes, March 2016)

But did you know….? Women outperform men when raising funds for their companies through rewards-based crowdfunding.

With rewards based crowdfunding the backer receives a tangible item rather than shares in a company. In most cases the item that you are given is the product you are trying to raise money to produce.

So how are women championing crowdfunding? Berkeley-Haas School of Business and the Kellogg School of Management found women have the ability to tell compelling stories and connect at an emotional level.  Their research also found that their use of vivid and inclusive language made them also outperform male entrepreneurs.

Want to know more about the research on women and crowdfunding? If so, click here.

 

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

The Latest Crowdfunding News – 2/3/16

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 around the world in five minutes. If you missed our last edition, you can catch up here. Today, we once again clock up the air miles from travelling to Canada via Kenya to ending our crowdfunding journey in Bradford.

 

UK Crowdfunding – A Worldbeater For Start-Ups

Crowdfunding News

The University of Cambridge and Nesta have just published their report on the progress made by the online alternative finance sector during 2015. (Huffington Post, February, 2016).

The report’s findings indicated that equity crowdfunding saw very considerable growth during 2015, increasing from £84 million in 2014 to £332 million and property which also featured in this segment accounted for £87 million of equity finance.

It was also revealed that £245 million of pure venture finance came from crowdfunding platforms such as Seedrs and Crowdcube. The platforms were estimated to have collectively raised 15.6 per cent of all venture funding in the UK. This really is an amazing achievement and puts the UK on the map for starting a business.

A key point from The University of Cambridge and Nesta is that by having full access to finance will allow SMEs to create jobs. The Huffington Post mentions that 60 per cent of people employed in the private sector work for small businesses and access to finance for them is vital for the UK’s future prosperity and growth.

 

LSE Research Backs Crowdfunding

Crowdfunding Research

From The University of Cambridge and Nesta’s research to now looking at research conducted by the LSE on crowdfunding.

LSE professors Saul Estrin and Susanna Khavul believe investors in crowdfunding campaigns behave in an ‘economically rational’ way, and whilst they do collaborate there’s no evidence of a ‘stampede effect’ among investors. (Proactive Investors, February 2016)

The professors have spent two years conducting analysis of data gathered from the Crowdcube platform and have used a qualitative approach in gaining investors thoughts on crowdfunding.

Crowdcube founder Luke Lang mentions that “The findings quash concerns that the crowd is made up of naïve ‘dabblers’ who stampede into supporting pitches that seem popular or cool.” (Proactive Investors, February 2016)

He stressed that the concept of crowdfunding is a rational marketplace mechanism where both investors and entrepreneurs come together and share their expertise that leads to the crowd to make well-informed decisions.

Interested in Estrin and Khavul’s research? Read more here.

 

Help Kenya, Not Kanye Campaign Boosts Canadian Charity

 

Help Kenya Not Kanye

U.S. rapper Kanye West’s plea for help with his supposed $53-million personal debt might instead lead to more donations for a African charity, based in Edmonton, Canada.

A couple of weeks ago, West pleaded for help with his finances on Twitter and even asked Facebook CEO Mark Zuckerberg for money!

He even made a shocking statement on social media that money spent funding his music is a better investment than opening “one school in Africa,” which he said wouldn’t really help “the country.” (CBC News, February 2016)

After making this outrageous comment, a former Kanye fan, Gabriel Ferrer, created his very own crowdfunding site called “Help Kenya, Not Kanye.” The public can donate money to 10 charities that help people in the east African country.

Todd Lorentz, the managing director of One Child’s Village stated in CBC News “What a sort of creative, brilliant idea of using the play of Kenya and Kanye, those words, to really shine the light on Africa and children and the needs of people in Africa, and specifically in Kenya”.

The Edmonton based charity relies on public donations to support Kenyan children who have been orphaned by HIV. They provide basic needs for the children, such as food, water, education, clothing and uniforms and school books.

Donations have started trickling into the foundation. Lorentz mentioned that the crowdfunding campaign has given the charity a major boost, especially considering donations have been down since the economic downturn in Alberta.

Last year the Canadian charity built a school in the capital Nairobi which currently has 200 students enrolled, and hired 10 local teachers.

Ironically, thanks to Kanye’s outrageous comments, hopefully more schools will be set up in the East African country. Serendipity has been a blessing in disguise for the charity and for the people of Kenya.

 

New Crowdfunding legislation Will Make It Easier For Australian Startups To Raise Capital

Australia Crowdfunding

 

New legislation to allow unlisted public companies to raise money through crowdfunding from mum and dad investors has passed through the lower house. (Business Insider Australia, February, 2016)

The bill faced heavy criticism from the opposition and will allow unlisted public companies with less than $5 million in assets and turnover to raise up to $5 million via crowdfunding each year.

Shadow minister for startups Ed Husic disagreed with minister for small businesses, Kelly O’Dwyer’s statement (who mentioned that the bill will help start-ups and other small businesses that may have difficulty accessing equity funding) and stated concerns around red tape, particularly the need for startups to become an unlisted public company if they wished to raise funds from using crowdfunding.

Mr. Husic mentioned that the opposition would propose changes to the crowdfunding laws after he had reviewed the final report.

If you would like to know more about crowdfunding in Australia, check out one of our previous crowdfunding blogs which features Australian property crowdfunding. click here.

 

Bantams Turn To Crowdfunding For Redevelopment

 

Bradford City Crowdfunding

League One side Bradford City has launched a crowdfunding campaign to redevelop its Coral Windows Stadium (aka Valley Parade).

The crowdfunding campaign, set up through ‘football fan-funding’ site Tifosy, is aiming to raise £250,000 to improve the facilities at the Coral Windows stadium from seat refurbishments to renovating the players’ changing rooms.

So far the campaign has raised £44,628 and has 52 days left.

Many football league teams have used Tifosy to raise funds, one that sticks out is Portsmouth’s training ground fundraising campaign which raised £270,000.

As much as we love footy at The House Crowd, unfortunately we can’t help you crowdfund your club, however, we can offer you some guides on Manchester (North and Central) and also our South Yorkshire guide. If you’re thinking of investing in these areas and are a footy fan, you’re spoilt for choice when it comes to watching quality football! ?

 

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 10/2/16

Property News: All The Latest Updates

Hi guys and welcome to our fortnightly property news edition, today we look at an array of news items from the domestic market from the average home in Britain will cost over a £1 million to looking at the strangest estate agent photos ever taken! In the last property news blog post in our quiz we asked asked about what is all the property in the world worth? The answer was B $217,000,000,000,000!

Average Home In Britain To Cost Over £1 Million By 2032

UK Property

According to research by the Lib Dems, the average home in Britain will increase from £290,000 to £1.017 million in 2032.

Party leader Tim Farron mentioned in The Telegraph that a child born on the day of the debate faces the prospect of paying at least a million for a home to call their own.

He stressed that relying on the “Bank of Mum and Dad” isn’t an ideal option for everyone, and as a result, it puts a monumental amount of pressure to millions of families who have worked hard and done the right thing.

The Lib Dems research revealed that the average property price in the UK will reach £650,000 within the next ten years, which is an increase of £360,000 on today’s average price.

Farron’s solution, as mentioned in The International Business Times (IBT) is that we need new garden cities, allowing councils to build housing stock, and bring thousands of empty homes back into use.

So how did the political party come to this frightening property statistic? They looked at trends from National Statistics figures showing house price inflation for the past three years. Whether you agree or disagree with their research, it remains apparent that no matter what way you look at the property situation in the UK, we have a crisis on our hands. Again, whether the 1.017 million is accurate or has been hyperbolised, we need to look at alternative ways to get us out of this property black hole.

 

Yorkshire Property Investment Market On The Rise

Yorkshire Commercial Property

According to new research published by the national commercial property consultancy Lambert Smith Hampton (LSH), investment in commercial property in Yorkshire and the Humber increased by 11% in 2015.

Their research claims that a total of £1.765bn was invested in the region in 2015, with £189m of this coming in Q4. However, Q4 saw a fall in deals completed of nearly 30%, 31 compared to 44 in 2014.

The director of agency and investment at Lambert Smith Hampton Bill Lynn told BDaily that: “Despite a reduction in Q4, the figures for Yorkshire and the Humber are nonetheless positive, with an 11% growth in 2015 as a whole. This is something that is mirrored in other regions across the country and shows the continued strength of the investment market in virtually every sector. The indication for 2016 is that supply is robust and a strong year is expected.” (BDaily, January 2016).

The demand for hotels, student accommodation and healthcare (alternative assests) seen in Yorkshire also occurred nationally and was a key driver of activity during 2015, investment also increased to £14.8bn over the year, 53% above 2014’s total.

Are you thinking about investing in property in Yorkshire? If so, why not check out our South Yorkshire guide to help you get started, click here to access.

 

Manchester Leads The Way As Commercial Property Investment Hits £1.2bn

manchester commercial property

Leading commercial property information provider CoStar Group research shows that a total £67.5 bn was invested in UK commercial property last year, making it the second strongest year on record and 46 per cent above the 10-year average.

Manchester as we know has been centred around the Northern Powerhouse concept and in addition it was the first city to receive ‘City Deal’ funding and regional devolution.

Being centred around the Northern Powerhouse and having a demand in office space has made Manchester a very lucrative place for investors. As a result, investment in commercial property in the city hit a total of £1.2bn in 2015, a three per cent increase on the £992m recorded in 2014.

Manchester commercial property should continue to attract investment as many investors are looking for an alternative to London. Are you interested in property investment in Manchester? Why not check out our very own Manchester guides (North and Central).

Image Source : Manchester Evening News

Northern Ireland Sees Sharpest Rise In Building Of New Houses In UK

Northern Ireland Property

The National House Building Council revealed that there was a 30% increase in registered new homes, from 2,487 to 3,223 last year in the province.

One Northern Ireland based housebuilder said 2015 had seen the biggest number of developments come up for tender since the housing crash. (Belfast Telegraph, January 2016)

However, the National House Building Council claimed that Northern Ireland’s increase came “from a relatively low base” because house-building slumped so drastically during the economic downturn.

One managing director of a property firm from Northern Ireland mentioned that they faced barriers to house-building that were not present in England. These barriers included sewer bonds, gold-plating of EU regulations and demands to upgrade underfunded infrastructure and services.

The managing director went on to say that despite these barriers they have found ways of overcoming them, in addition, one representative stated : “In general, builders are now more confident about prospects for house-building and this optimism is shared by potential buyers.” (Belfast Telegraph, January 2016)

Richard Ramsey, the Ulster Bank chief economist said the house-building recovery in Northern Ireland still has a very long way to go, though picking-up from the downturn was welcome news.

Image Source : Property Pal

It’s Gone All A Bit Pete Tong In London! The Strangest Estate Agent Photos Ever Taken

Property Fails

A collection of the strangest photos taken by people attempting to shift properties around London has been made showing just how little they’re trying as ITV News points out.

The bizarre photos have been put together by a man called Andy Donaldson who stumbled upon the images whilst he was looking to buy a flat.

From a cluttered bedroom with a bunch of chairs stuffed together to an all in one shower toilet with a washing machine next to it!

Want to see more of these property fails? Click here.

Fortunately our very own property investments are fail free so you won’t find any toilets in kitchens or doors fitted in the wrong places! Check out our latest investments here.

Image Source : ITV 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

 

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