Abundance moves into social and affordable housing sector

Abundance has launched into the social and affordable housing sector with its first crowdfunding project to help address the current UK housing crisis.

The P2P ethical investment platform has created the crowdfunding project in response to feedback from its existing customers.

The investment – which is called Merseyside Assured Homes, from housing developer Octevo Housing Solutions – aims to raise up to £4.25m to fund the construction of 21 mostly three-bedroom, social or affordable rental homes and nine two-bedroom supported living flats in and around Liverpool.

Bruce Davis, joint managing director at Abundance, said that it had led the way with its “win-win approach” to support the transition to a sustainable, green energy economy.

“Now we want to use the power of crowdfunding to help address the structural problems of the UK housing market.

“We can change the way we finance new developments so that families and young people no longer have to bear unsustainable levels of housing costs. 

“Everyone wins when more people get access to stable and long-term homes: tenants benefit, communities are stronger and small investors get a fair return.”

The three-year secured investment is paying 4.5% interest a year, which includes a 0.5% bonus from Abundance, with capital returned in full on maturity.

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