Industry Interview: Frazer Fearnhead, Founder of The House Crowd.

What is The House Crowd?

The House Crowd was the first property crowd funding website in the world. We offer a hassle-free way for people to invest in property. We started trading in early 2012 and have helped democratise the property investment process opening up to many people who were previously unable to benefit from property investment. People can invest with as little as £1000.

Through our platform, investors can select a property they would like to invest in and crowd together with like-minded people to purchase that property. The profits generated by that property through rental or sale are then shared proportionately.

Why did you launch the concept?

I’ve been involved with property investment for many years, both investing myself and working with investor clients. In 2010 many of these cash rich clients  were able to buy up it is extremely cheaply. However there are lots of other people  I knew who wanted to invest in property but either didn’t  have the funds for a deposit or were unable to get mortgages. People  were extremely unhappy with the banks  and the way they treat people, so we thought why not cut them out altogether.

How does The House Crowd help consumers over other crowd funding platforms online?

There are a number of properties crowdfunding websites that have started over the last few years. Each does things slightly differently. Our ethos at The House Crowd is to invest for cash flow and, although we do offer short-term development projects, most of our properties are medium to long-term buy to let properties that produce high yields-between 9 -10% in the case of single let properties and usually around 12% in the case of multi-lets (after all the bills have been paid). Some property crowd funding sites seem to be focused purely on the potential for capital growth. I appreciate this is attractive to many people but we regard capital growth as speculative – it is an added bonus rather than a strategy in itself. If a property is not putting money into your pocket each month then to my mind it is not a good investment and if you’re subsidising it, it is only going to be a matter of time before you run out of money and are forced to sell it. And, as we know, forced sales rarely achieve premium price.

How does Social Media play a part in the marketing of The House Crowd?

Social media plays a big part in our marketing strategy, we try and curate articles about property and crowdfunding as well as producing our own reports and infographics on property investment for release via social media. The “before” and “after” photographs of the properties we buy for development or refurbishment are also very popular.

Would you say that The House Crowd falls into the PropTech industry?

Yes

If you could offer any advice to other start up companies in the property industry, what would it be?

Create a brand that really stands out and is easily recognisable, offer excellent service and always deliver on your promises.

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Estate Agents should not all look the same
Estate Agent Talk

How to Become an Estate Agent with No Experience

Breaking into the property industry can seem intimidating – especially if you’ve never worked in it before. But the good news? You don’t need years of experience or fancy qualifications to start a career as an estate agent in the UK. In fact, many successful estate agents started with no background in property at all.…
Read More
buying at auction uk
Estate Agent Talk

9 Advantages of Selling Your House by Auction

Selling your house by auction might seem like a daunting prospect, but it comes with numerous advantages that can make it a highly attractive option. While the traditional method of selling through an estate agent has its place, auctions are increasingly becoming a popular choice for homeowners looking for a swift and reliable sale. Here…
Read More
Breaking News

Majority of Tenants Unsure How Changes Will Affect Them, Says LRG

With major changes to the private rental sector on the horizon, 62% of tenants say they don’t know whether the government’s Renters’ Rights Bill will address their concerns – highlighting a growing need for clearer communication around what the reforms will mean in practice. LRG’s latest Lettings Report shows that while landlords are widely aware…
Read More
Home and Living

Perfume Storage Tips: How to Keep Your Fragrances Fresh

Perfumes are sensitive compositions that can be significantly affected by how they are stored. Proper storage ensures that your favorite fragrances stay fresh and maintain their intended scent profile. In this article, we’ll explore practical, fun, and effective tips to help you preserve your perfumes in perfect condition. Understanding the Sensitivity of Perfumes Perfumes are…
Read More
Breaking News

Renters’ Rights Bill Delay Causing Uncertainty for Tenants and Landlords

Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning. The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to…
Read More
Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More