The top five largest peer-to-peer property crowdfunding platforms have been revealed in BrikkApp’s February UK Property Crowdfunding Report.
The UK market currently hosts more than 40 property crowdfunding platforms – 10 of which have been founded within the past three years.
When taking into account platforms that are only focussed on property crowdfunding, the five largest include: Kuflink, Octopus Choice, Proplend, Property Partner and Cogress.
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Since being formed in 2014, Cogress has funded £202m for 60 UK property and hotel development projects, with returns payable on exit.
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Meanwhile Kuflink has raised more than £73m for 250 projects since the bridging and development lender’s inception in 2016, while Octopus Choice, which pools funds from various online investors and co-invests five per cent into every loan, has funded £136m across 250 projects.
Property Partner, which also offers a secondary market, has funded approximately £82m for 122 property projects while Proplend has raised more than £158m for 98 projects.
The total volume of all crowdfunded and P2P-backed property projects in the UK now exceeds £1bn. The average value per project stands at £440,000, and the UK average yield is between nine and 12 per cent.
Two-thirds (65 per cent) of property crowdfunding projects are debt based, while 35 per cent are equity-based.
The majority (91.8 per cent) of the projects are residential while 8.2 per cent are commercial.
And around 53 per cent of the projects are for new development projects while 47 per cent refer to pre-existing properties.