Breaking Property News – 11/10/2023
Daily bite-sized proptech and property news in partnership with Proptech-X.
Fifth Dimension AI raises £2.3M Pre Seed round amplifying the exceptional in real estate professionals
Press Release October 11th, 2023, London: Fifth Dimension AI, the company amplifying exceptional real estate professionals, today announces that it has raised £2.3 million in a pre seed round as it comes out of a pilot phase, ready to transform an industry which has struggled to embrace the digital age.
Ellie uses automated processes and machine learning to support document heavy and data-filled industries like real estate. The business believes that Large Language Models (LLMs) can unlock the exceptional in people, taking away the time consuming and often boring task of reviewing large quantities of information locked away in disparate documents, and instead produce outputs in a fraction of the time. Following the completion of an initial pilot scheme running since April, Fifth Dimension AI already boasts nearly 10 major real estate firms as clients, including big names such as Hamptons.
The pre seed investment round was co-led by Anthemis’ Female Innovators Lab Fund and Seedcamp, with participation from Ascension Ventures Ltd, Concrete VC, Love Ventures, Sie Ventures, and Twin Path Ventures. The investment will be used in enhancing the tool’s capabilities for an expanding audience across the real estate industry.
Founded in January 2023 byJohnny Morris and Dr. Kate Jarvis, Fifth Dimension AI harnesses their wealth of expertise across real estate, finance and technology. Dr. Kate Jarvis is a large language model wizard with a PhD in Linguistics from Stanford University. She’s spent the past 12 years designing Machine Learning-powered products and bringing them to market, in Chief Product and Technology Officer roles in varied sectors. Johnny has more than a decade of real estate experience which includes roles as Chief Operating Officer at Wayhome and Analytics Director at Countrywide.
The fundraise comes as productivity continues to be a major issue for the UK. According to forecasts from KPMG, the prospects of high interest rates and low productivity are expected to hold back growth, with GDP growth slowing to just 0.4% in 2023 and 0.3% in 2024. Developed to improve productivity and amplify exceptional teams in industries that deal with a lot of documents and data, Ellie acts as a partner in improving productivity by automating time-consuming tasks such as data analysis and industry research. This frees people up to spend greater time bringing value to their business, using their expertise and insights.
Improving productivity in the real estate sector could bring significant reward. Residential real estate remains the biggest asset class in the world, and inventory is expected to rebound in 2024 for both residential and commercial real estate after a challenging period.
Dr. Kate Jarvis, Co-Founder & CEO of Fifth Dimension AI, comments, “We are on a mission to redefine the world of work, beginning with the real estate industry. As a result of the pandemic, people want to do work that is impactful, purpose-driven and aligns with their values. With Ellie, we are providing real estate professionals with a solution that will lift them out of time-consuming, repetitive and boring work – enabling them to do their best work and lead happier, purposeful, and more fulfilled lives.”
Johnny Morris, Co-Founder & Chief Product Officer of Fifth Dimension AI, adds, “We designed Ellie to provide real estate professionals with a competitive advantage by providing a partner to help them get done in minutes what usually takes hours. Across our clients, we’ve been amazed by the impact that Ellie has on the newest generation of real estate professionals. These young and ambitious individuals are able to increase their output and amplify their expertise in the industry – in a fraction of the time. With Ellie as their partner, we believe the next generation will have the power to truly move the industry forward.”
Urgent need for Increased Awareness of Build-to-Rent Among UK MPs
- Lack of knowledge identified as a key challenge for the sector
- Just 11% of MPs would prioritise BTR in their constituency
Research[i] conducted by communications consultancy, Cavendish Consulting and YouGov, reveals that just 11% of UK MPs would prioritise the development of new Build-to-Rent (BTR) homes in their constituencies – despite the demand for rental properties being high.
The research asked MPs across all parties about their constituency housing focuses and most strikingly, BTR homes ranked only 7th out of eight listed housing options in terms of priority. 63% of Conservative MPs prioritised private sale housing with Labour MPs more likely to prioritise council housing and social rent homes. The survey found that only 14% of Conservatives and 10% of Labour MPs would prioritise BTR homes in their constituency. With the high likelihood of Labour being the next party of Government, this highlights a huge concern for the sector that needs to be addressed.
While over half of all BTR homes are in London – and with demand for rental properties in the capital remaining high – the research also revealed that not one London-based MP considered BTR to be a top priority, presenting further barriers and challenges for the industry.
Having been priced-out of obtaining a mortgage, many people are experiencing soaring rents [ii]for properties that are often inadequate. As a result, a number of property developers are investing in BTR homes, to provide communities with more options that are attainable. According to Business LDN, the most common (28%) income band for BTR residents is between £26,000 and £38,000. When MPs of Cavendish’s survey were asked what they think those living in BTR homes earn, 39% believed the average income was lower than this sitting between £20,000 and £29,999. The remaining MPs (61%) selected a wide mix of incomes ranging from under £20,000 to £100,000, this disparity suggests that most MPs aren’t aware of the affordability of a BTR home.
Max Camplin, Executive Director at Cavendish, said: “Our research shows there is clearly a lack of prioritising the development of BTR homes at a national level. Every day there are stories emerging from the private rented sector – where people are paying expensive rent for a property that doesn’t meet their needs. Not only is this impacting them financially, but also their mental and physical wellbeing.
“Compared to some of the rental market which can be poor quality and sometimes badly managed, BTR provides good quality, safe, and sustainable rented homes to suit a wide range of income levels. We know that MPs want the best for their constituents and communities, therefore there’s clearly more the property industry can do to communicate the benefits of BTR.”
Although over half (58%) of MPs expressed support for an increase in BTR homes in their constituencies, a significant portion (one-third) remained uncertain about their stance. This result again highlights a lack of knowledge and the need for clearer communication on the benefits of BTR homes to local communities.
Max continued: “It is clear that BTR can play a vital role in addressing Britain’s housing crisis, yet demand still massively outstrips supply, meaning renters across the country are losing out on the benefits of BTR. As our research shows, national politicians do not prioritise the sector, with six other housing types prioritised by MPs. The unrealised investment in new BTR homes is damaging to Britain’s housing market, holds back growth, and continues to see too many people renting in unsuitable and poorly managed rental accommodation.
“The sector is still largely misunderstood by policy-makers and decision-makers and greater awareness is needed, particularly as we approach a General Election. All eyes are on the political parties to define their visions to address the lack of housing supply. For the BTR sector, now is the time to address the lack of awareness, tackle the misconceptions, and put the sector at the centre of a housing revolution in Britain.”
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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