The House Crowd has entered into administration.
The property peer-to-peer lending platform has appointed Frank Ofonagoro, Jeremy Woodside and Frank Wessely at business advisory firm Quantuma as joint administrators with consent from the Financial Conduct Authority.
They said it is not expected to have a material impact on investors.
Ofonagoro, Wessely and Woodside were all appointed joint administrators of the platform on 24 February. They said they will continue the orderly wind down of the loan portfolio and the return of monies to lenders.
It is not yet clear how many of the firm’s eight employees and five consultants will be affected by the administration, as well as the 15 developments being funded through the platform.
Founded in 2012, The House Crowd offered P2P investment through a range of products including Innovative Finance ISAs, a 30-day fusion accounts and self-invested personal pensions, to fund bridging loans secured against land or property.
The House Crowd has around 3,700 active investors on the platform and has to date funded more than 400 developments worth £123.9m.
On 25 February the Quantuma joint administrators were also appointed over House Crowd Property Management Limited, House Crowd Finance Limited and House Crowd Finance (Security Agent) Limited.
“Due to ongoing financial issues facing the company, the directors resolved that it would be in the best interests of The House Crowd and its creditors and its loan investors, to appoint administrators,” said Frank Ofonagoro, director at Quantuma.
“Our priority will now be on securing the best possible outcome for all parties. Wherever possible, that includes the repatriation of client monies, completion of existing development builds, orderly wind down of loanbooks, and ultimately protecting the interest of investors and creditors.
“We would urge all parties affected by this news, in the first instance, to visit the House Crowd website, where we have posted a series of FAQs.”
Read more: The House Crowd director departs
The House Crowd’s website says investors wishing to contact the joint administrators directly should email email@example.com.
Alternatively, people can write to write to The House Crowd Limited – In Administration, c/o Quantuma Advisory Limited, No 1 Spinningfields, Quay Street, Manchester, M3 3JE.
This follows fellow property peer-to-peer lending platform Octopus Choice permanently closing on 24 February, after being closed for investment temporarily.