Peer-to-Peer Property Funding

With peer-to-peer lending, individuals provide unsecured loans to those in need of finance, rather than saving their money in a bank or building society. Though quite a recent phenomenon in the UK, peer-to-peer lending is predicted to continue to grow rapidly, especially as the reputations of our high street banks continue to be damaged by seemingly unremitting revelations of malpractice.

Peer-to-peer lending websites, such as Zopa, Yes-secure and Ratesetter have already achieved significant success, with more than £200m estimated to have been lent through Zopa since its inception in 2005.

Whilst peer-to-peer lending has the benefit of cutting out money-grabbing middlemen, the risk of reintermediation is becoming an increasingly likely problem. As peer-to-peer lending companies grow, their marketing, regulatory and operational costs increase, which could potentially cause companies such as Zopa, Yes-secure and Ratesetter to lose the benefits which currently sets them apart from traditional banks.

Despite recent Government support, only time will tell whether peer-to-peer lending will become a norm of borrowing and lending in the UK. Here at The House Crowd, we support the practice of peer-to-peer lending, but would remind those lending their funds that with us you can get a very good return on your money and need do nothing at all!

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www. We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www. If you’ve read enough and want to invest now, visit www.