Property crowdfunding platform The House Crowd have raised just over £1.3 million over a 24-hour period to support housing developments in Greater Manchester. This is the first time the business has broken the £1 million mark in a day.

Most of the money – £1.2 million – was for its Egyptian Mill Development of 42 house and 15 apartments in Lees, just outside of Manchester. Attracted by a typical return of 10 per cent each year over a 15 month investment term, investors have clambered to raise funds and support new build houses and flats as the UK housing crisis continues.

The House Crowd allows investors to pool their money with other investors and share in the returns.

Strong growth since 2013 for the House Crowd

The House Crowd has increased its sector presence since it hit £1 million in crowdfunding in 2013 (for the whole year). By 2016, it had achieved its first £1 million crowdfund in a week.

Lots of peer to peer lending sites have emerged in the UK in recent years as interest rates remain low for savers. Investors are clearly keen to get better returns than a traditional savings account with minimal risk to their money. And since April 2016, the Innovative Finance ISA has allowed peer-to-peer lender to offer a tax free ISA account.

Frazer Fearnhead, CEO and co-founder of The House Crowd said, ‘Raising £1 million in a single day is not just a confidence boost for The House Crowd and the service that we offer, but also for housing developments in the North West. The numbers don’t lie – there is clearly a big appetite amongst retail investors for property development financing and peer to peer secured lending, which is exactly what we offer.

‘It’s important that we keep up this momentum to continue helping solve two of the major problems within our society – the lack of quality housing and people’s difficulties in saving their money. If we can continue building much needed housing, whilst providing our members with a reliable way to build a nest egg for their retirement, then we are serving our purpose.’

Further reading on Crowdfunding

Crowdfunding lessons from The Funky Iron Company’s Joe Sillett