Twentysomethings locked out of the property market are putting their savings into a scheme that lets them invest in lavish central London homes.
About a fifth of the investors in CapitalRise, which raises funds to buy properties in areas such as Belgravia and Mayfair, are younger than 35 and one is just 20, according to the company’s founders.
They can put in as little as £1,000 for “skin in the game” of the central London property market at a time when most bank accounts are offering almost no interest.
In the first deal a three-bedroom flat in Eaton Square was purchased earlier this year for £5.1 million, including £1 million from CapitalRise investors. The second deal was for a house in Grosvenor Square in Mayfair with the same amount being raised.
The company is now launching a third much bigger project, a £106 million development of five townhouses and four flats in Knightsbridge near Harrods called Yeoman’s Row.
Uma Rajah, chief executive of CapitalRise, said: “It has been really interesting to see how many young people are taking the chance to invest in high-end luxury property.
“The first two projects were really successful and we have just paid out £20,000 to investors.”
Belle Holden, 23, an interior designer from Earlsfield, put £2,500 into CapitalRise’s Eaton Square property to start saving for a deposit on a house.
She said: “Everybody wants to get on the property ladder but when you earn around £30,000 like me, it’s virtually impossible in London.
“You watch as properties rise in value and feel you are missing out. With this investment I am getting a return higher than inflation and I feel I am benefiting from the housing market.”
