As the house price boom has sustained itself in the UK for over two decades, investors large and small have continued to cash in on one of the most popular forms of investing, buy-to-let.

While buy-to-let property investment is still an attractive prospect for many, the introduction of government legislation coupled with the inconvenience of demanding tenants has deterred some people from purchasing properties to subsequently rent out.

So, what alternatives are there? Property crowdfunding may very well be the ideal venture for those keen to cash in on investing in property but don’t fancy being tied down with the responsibilities of buy-to-let.

What is property crowdfunding?

Essentially, property crowdfunding is no different to any other form of crowdfunding, when an investment, business or product is funded by raising money from a large number of people. This is usually done online, with each investor only contributing a small amount of the total sum needed.

A much more flexible way of investing

With traditional forms of property investment, you will need all of the money available in full to make a purchase or will at least need a percentage of the cost for a deposit. With property crowdfunding, you can invest small amounts of money and you can also spread your investment across a number of properties, which will in turn improve your overall property portfolio.

Can you trust property crowdfunding companies?

Much like any type of investment, property crowdfunding does pose some potential risks, but companies that are legitimate will be adhering to a strict code of conduct that is laid out by the FCA.

The other benefits of property crowdfunding

• You can indulge your different interests

Maybe you want to invest in a straight forward buy-to-let or perhaps you fancy trying putting your money into serviced accommodation, developments or conversions. Either way, property crowdfunding gives you the opportunity to try your hand at placing your money in different projects meaning that your portfolio will be much more diverse.

• It’s a hands-off investment

When you want to invest in property but are keen to do so without the hassle involved with tenants, negotiations and refurbs, property crowdfunding is perfect for you. Everything is covered by the companies that establish the projects and only ones that are ready to go will be offered out.

• Tailored time frames

What’s great about property crowdfunding is that you can tailor the length of investment projects to suit you. Maybe you only want to invest for a few months or perhaps you’d prefer to commit for 5 years. Either way, you’ll be able to find projects that accommodate your overall goals.