ASSETZ Group is readying to launch Assetz Exchange, a property crowdfunding platform that it claims will help solve the UK’s housing crisis, Peer2Peer Finance News can reveal.
The new platform will enable users to invest in a range of properties, including student accommodation, privately rented houses and flats, and affordable housing. These properties will either be rented out or sold on, depending on market demand, either at market or affordable pricing.
The investments will take the form of loans to a special purpose vehicle which will buy the properties. All investments can be held within an ISA wrapper and all properties will be fully managed. There will also be an aftermarket for users wishing to sell on their investments, if there is demand, the firm said on Friday.
Assetz Exchange, which will be a sister company to peer-to-peer lender Assetz Capital, is to be launched before the end of the year. It is fundraising for launch with an equity crowdfunding campaign on Seedrs, which is already open for investor pre-registration.
Read more: Assetz Capital co-founder departs
“There is something very wrong with our housing market,” said Stuart Law, founder of the Assetz Group.
“Not enough houses have been built in the places that people want to live – and those that have been built are often priced out of reach of those that need them.
“That’s why we created Assetz Exchange. We’ll direct investors’ capital to projects and investments that bring new housing onto the market for rent or for sale as appropriate to local market conditions and demand. We will also act as the gateway for existing tenanted, landlord-held housing to be acquired, improved, rented and released for sale to homeowners over time, again as appropriate to local market conditions.”
Investors can choose to fund long-term housing development projects or shorter-term loans for new housing, Law said. They will also be able to choose whether to fund normal market price properties or those with affordable rents and sale prices.
“Combined, these two businesses provide a model to get housebuilding moving faster in the UK – while also delivering for our investors,” Law added. “We are creating a financial hub to help provide more solutions to help solve the housing crisis here in the UK.”
Assetz Exchange’s sister company Assetz Capital has lent out more than £600m to small businesses and housebuilders since launching in 2013.
Read more: Assetz Capital sees £50m IFISA boost