A new online property investment platform, InvestSure, has been launched to bring together professional investors and property developers.
InvestSure says it will allow property developers to access a diverse range of funding for projects, where previously traditional banks have been unable or unwilling to provide it. InvestSure explains that better access to funding will be a vital component in helping Britain solve the housing crisis.
Only open to professional investors, Investure believes it is the first ‘pro-to-pro’ network of its kind. The platform has been launched to address what InvestSure believes is the increasing two-tier nature of the UK property development market, in which small to medium sized developers are struggling to acquire funding on favourable terms thanks to tight banking restrictions.
Janine Lewis, CEO and founder of InvestSure, commented: “The UK property market has been seriously dysfunctional for some time. Since 2007, bank lending has been limited to 65 per cent loan-to-cost at best, leaving developers to bridge the gap. This prevents them from moving quickly, and as a result activity has been opportunistic and sporadic. It has also placed an inordinate amount of power in the hands of investors, diminishing profits. The InvestSure platform will rebalance this relationship, allowing developers to gain exposure to numerous investors competing to fund projects, making the process quicker and more efficient.
“This is sorely needed. We are in the midst of a housing crisis, one that cannot be solved by large developers alone. The money is out there: there are plenty of professional investors out there willing and able to fund these projects. InvestSure can connect these two groups together in an efficient, convenient, and mutually beneficial way.”
The platform covers all forms of property investments across the UK, including development projects, assets, land and bonds covering every asset class. Until the end of 2016, investors and property developers can become members of InvestSure free of charge.