Since launching in March 2012, we have been featured in:
The Times, The Sunday Times, The Telegraph, The Financial Times, The Independent, The Daily Express, Crowdsourcing.org, The Investor's Chronicle, Just Do Property, BBC Radio 4, The Guardian, This Is Money, The Metro, Landlord Zone, The Irish Times, The Daily Mail, The Sunday Express, Urban Life, The London Evening Standard and many more.
Here are excerpts from and links to some of the articles:
The Manchester Evening News
The House Crowd Celebrates as turnover increases by over 140%
– January 15th, 2016
Property Crowdfunding platform, The House Crowd, is celebrating a year of growth as turnover hit £1.1m for 2015- an increase of over 140% from 2014.
The Times Investment section
Get a foot on the property ladder
– May 17th 2014
It may sound like the stuff of fantasy, but it's now possible to get in on the property boom for a few hundred pounds. A host of new websites let investors club together and do just that, allowing priced-out aspiring homeowners to benefit from the rising market — without ever needing to fix a roof or call a plumber. These crowdfunding sites raise money from a large number of investors and buy homes that are rented out and then sold, with profits divided. The phenomenon is becoming mainstream so here's what you need to know if you're tempted to add property to your portfolio.
What is crowdfunding?
A method for raising money online that's said to have started in 1997 when a web campaign brought in $60,000 for the British rock group Marillion to tour America. Thanks to the constraints on bank lending after the financial crisis it has become a multibillion-pound global phenomenon and was even used in Colombia recently to raise $200 million for the construction of the BD Bacatá building, the world's first crowdfunded skyscraper. The sector has rocketed, particularly in America, but Britain is catching up fast. By bypassing banks businesses can attract a large volume of small investments in a short period, so projects can be funded very quickly.
How does it work?
You choose a property on the crowdfunding website you wish to invest in and transfer your money. Once the target level of investment is hit the home is bought and placed within the wrapper of a limited company and shares are issued in proportion to investment. Properties are managed on the behalf of shareholders who can normally choose to take rental income, a share of the capital appreciation or both. After a period of years the property is sold, unless the shareholders vote against this.
Is this peer-to-peer lending?
Peer-to-peer lending platforms match people who can lend with those who want to borrow. Investors receive their money back with interest at the end of a specified term. Crowdfunding platforms raise finance by asking a large number of people for a small amount each in exchange for equity, and investors get shares or a stake in the business.
Who are the major players?
The House Crowd was founded two years ago and has bought 58 properties. The managing director, Frazer Fearnhead, says it has raised just under £3.9 million from 470 investors and is in the process of getting full FCA authorisation. The average investment is £8,200 and it normally takes five days to raise the capital for each project. It has two business models, a fixed 6 per cent annual return plus half of the profit when the property is sold, or a 7.5 per cent return with no share of the equity. Mr Fearnhead says: "We buy a new property about every six days. Our customers include ex-landlords who are tired of hassle and those who want to invest in property but can't raise a deposit, but most just want a better return on their savings."
Crowdfunding proving the perfect match-maker
– June 15th, 2014
The House Crowd says its participants can put from £1,000 down on a buy-to-let property to receive a guaranteed 6% net return per year plus a share of profits on sale. Alternatively, they can opt for a fixed return of 7.5% net a year with no equity in the property. A typical property currently listed is a two-bedroom terrace house in Moston, Manchester, valued at £68,000 after refurbishment.
Is Following the In Crowd the Right Route for Savers?
– July 30th 2014
The House Crowd, for example, allows you to become a property investor with £1,000.
Since launch in 2012, it has spent £5million buying and refurbishing 69 properties in the Manchester area. Managing director Frazer Fearnhead says: "We have brought property investment to the masses."
Insider Media Limited
The House Crowd Hits £5m
– September 25th 2014
Hale-based crowdfunded property investment company The House Crowd has fundraised more than £5m in the two years since it launched, the business has announced. The House Crowd began trading in 2012 and offers people the opportunity to invest as little as £1,000 in the property market via crowdfunding. Since it started trading, it has bought and refurbished 78 properties in and around the Manchester area, totalling more than £5m of investment. Frazer Fearnhead, managing director of The House Crowd, said: "The country's fascination with property and the attraction of hassle free investment through crowd funding has proved to be a very popular combination. "We speak with investors on a daily basis frustrated with their banks or the poor levels of interest accrued in their savings accounts. More and more people are looking to boost their retirement income, or do something with smaller amounts of money than have it sitting around, doing nothing."
Earlier this year, the business crowdfunded its own expansion by asking investors for £156,000 to help fund their growth plans. After two days, the company had secured investment of £465,000.
The House Crowd Crosses the £4m Threshold
– July 1st, 2014
Hale based crowdfunded property investment company, The House Crowd, has announced it has fundraised more than £4 million from investors over a two year period.
The House Crowd began trading in 2012 and offers people the opportunity to invest as little as £1,000 in the property market via crowdfunding. Since it started trading, the company has bought and refurbished 64 properties in and around the Manchester area, totalling more than £4.1 million of investment.
Frazer Fearnhead, managing director of The House Crowd commented; "We're delighted to have passed this significant milestone after just two years in business. The country's fascination with property and the attraction of hassle free investment through crowdfunding has proved to be a very popular combination.
"We speak with investors on a daily basis frustrated with their banks or the poor levels of interest accrued in their savings accounts. More and more people are looking to boost their retirement income, or do something with smaller amounts of money than have it sitting around, doing nothing. The House Crowd provides investors, of any age, the opportunity to invest in bricks and mortar without having limitless means."
Earlier this year, the business crowdfunded its own expansion by asking investors for £156,000 to help fund their growth plans. After two days, the company had secured investment of £465,000, more than £309,000 then they originally asked for. The funding has allowed the business to relocate to larger premises in Hale and recruit an additional 4 members of staff.
The House Crowd has recently secured its 65th project, a 3 bed property in Openshaw, Manchester which will be refurbished and rented for 3-5 years.
Crowdfunding company crowdfunds its own future
– May 14th 2014
Customers of 'The House Crowd' have sent a clear sign of their confidence in the company by 'crowd funding' its own expansion, investing more than £156,000 and valuing the company at £3,000,000.
The House Crowd started trading two years ago and offers people the opportunity to invest as little as £1000 in the property market. Since it started trading it has bought and refurbished 55 properties in and around the Manchester area, totalling more than £3.7 million raised via crowd funding. Wishing to develop the company further, managing director Frazer Fearnhead, decided to turn to existing customers and ask them if they would like to fund the expansion. He was overwhelmed by the response.
Customers of Cheshire property crowdfunders invest in the business
– May 13th 2014
Customers of 'The House Crowd' have sent a clear sign of their confidence in the company by 'crowd funding' its own expansion, investing more than £156k and valuing the company at £3 million.
The House Crowd started trading two years ago and offers people the opportunity to invest as little as £1000 in the property market. Since it started trading it has bought and refurbished 55 properties in and around the Manchester area, totalling more than £3.7 million raised via crowd funding.
Wishing to develop the company further, managing director Frazer Fearnhead, decided to turn to existing customers and ask them if they would like to fund the expansion. He was overwhelmed by the response.
Frazer commented; "In our short two-year history, we have successfully sold the concept of crowd funding to our customers so much so, they have decided to invest their money in our business
The Money Principle:
A new way to invest in property The House Crowd
– August 24th 2013
Now we like simple – it means that we don't have to spend too much time thinking about the nuts and bolts so can concentrate on the big picture.
How does The House Crowd work?
It brings together investors who put small amounts of cash (minimum £1000) into a special account which is used to buy a particular house, pay all the legal fees, refurbish it and let it out. The promised return on investment is 6% paid annually and when the property is finally sold, there is a 50% of the profit to be shared amongst the investors. De facto, you become a shareholder and really don't need to do anything.
Crowd together to get empty properties back on the market
– June 27th 2012
With a nationwide council house waiting list of over 4 million people, property investment group The House Crowd is backing George Clarke's (Channel 4's The Restoration Man) campaign to get the 900,000+ empty properties back into action.
Recently launched, The House Crowd has already began breathing life into distressed and uninhabitable properties, purchasing and refurbishing them to a high standard before selling them on or renting to those in need of housing.
Its innovative approach to property investment has so far raised approximately £360,000 for 6 purchases of empty properties which the company is in the process of bringing back to life in locations where they are most needed. The first of its kind in the UK, the unique business model uses crowdfunding to raise the capital to purchase properties, while negating all finder's fees usually associated with property investment companies.
Working on a joint venture basis, the investors receive a fully secured investment, which, if reinvested, will produce a typical annual return on investment of 25%. Each investor becomes a shareholder in the company that purchases a property The House Crowd has sourced and receives a pro rata share of 50% of the net profit when the property is sold.
Frazer Fearnhead, founder and managing director at The House Crowd, comments: "Our approach to property investment is enabling us to have a direct and positive social impact on the communities we purchase within, refurbishing properties which would otherwise form part of the staggering empty homes statistic previously mentioned.
The House Crowd Raises £5m From Hungry Investors
– September 10th 2014
The House Crowd, the south Manchester property investment company, says it has now raised more than £5m from investors which it has allowed it to buy more than 70 residential houses.The Hale firm, founded by entrepreneur Frazer Fearnhead and surveyor Suhail Nawaz in 2011, operates under a model where individual investors club together to buy a specific property, which is then refurbished and rented out. It attributes its recent growth – £3m from investors.
Invest in property
– June 17, 2014
The properties are currently in the Salford and North Manchester areas as that's where the business is based. Most of the tenants are on Housing Benefit. There is a contingency fund for urgent repairs and any periods where properties don't have tenants.
Surviving the Auction Room
– July 28th 2014
(article written by our MD, Frazer Fearnhead)
Crowdfunding Property Investments in the UK
– August 14th 2013
This is Money:
This is Money The Truth About Buying Repossessed Property
– December 7th 2012
Urban Life Magazine:
Urban Life Property News – Crowded House
– July 26, 2012 (Article reproduced by kind permission of Urban Life Magazine)
The Metro Property Investment that's as safe as houses
– April 19, 2012 (Article reproduced by permission of Associated Newspapers)
The House Crowd: crowdfunding rental property
– June 14, 2014
Greater Manchester Business Week
A Coffee With…Frazer Fearnhead
– June 12, 2014
New breed of crowdfunding sites make it cheaper than ever to be a property investor
– May 29, 2014
BBC Radio 4, Money Box programme
Investing in property… with £1,000
– May 25th 2014
London Evening Standard Business Section
Money – how to save it
– June 26th 2012
Manchester Evening News:
Crowdfunding – how to stand out with a little help from the crowd
– May 31st 2012
Just Do Property:
The House Crowd – a refreshing approach to property investment for all
– March 20th 2012
BBC Radio 4:
BBC Radio 4 – You and Yours, discussion on crowdfunding
The Irish Times:
Hanging out with the in crowd
– April 2012