Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.
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Risk Summary

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  • You could lose all the money you invest
  • Most investments are shares in start-up businesses or bonds issued by them. Investors in these shares or bonds often lose 100% of the money they invested, as most start-up businesses fail.
  • Checks on the businesses you are investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through. You should do your own research before investing.

You won't get your money back quickly

  • Even if the business you invest in is successful, it will likely take several years to get your money back.
  • The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
  • Start-up businesses very rarely pay you back through dividends. You should not expect to get your money back this way.
  • Some platforms may give you the opportunity to sell your investment early through a 'secondary market' or 'bulletin board', but there is no guarantee you will find a buyer at the price you are willing to sell.

Don't put all your eggs in one basket

  • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more here.

The value of your investment can be reduced

  • If your investment is shares, the percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
  • These new shares could have additional rights that your shares don't have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

You are unlikely to be protected if something goes wrong

  • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker.
  • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here.

If you are interested in learning more about how to protect yourself, visit the FCA's website here.

For further information about investment-based crowdfunding, visit the crowdfunding section of the FCA's website here.
modular construction
Insights
Industry Insights
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Alyssa Peterson
· 2 min read
· Updated on

How could modular housing play a role in addressing the UK’s housing crisis?

The UK's housing crisis has been a major issue for several years, with 8.4 million people in England alone living in unaffordable, insecure, or inadequate homes, as reported by the National Housing Federation in 2020.

Modular housing is one solution that has emerged in recent years with the potential to provide high-quality homes quickly and affordably, whereby prefabricated units are constructed off-site and assembled quickly and efficiently on-site.

Although the UK's modular housing industry is relatively new compared to countries like Japan and Germany, it is quickly gaining traction. According to the industry group Make UK Modular, the industry has the ability to build 20,000 modular homes by 2025,  a fifth of the 100,000 annual housing shortfall in the UK. 

As of 2022, 3,300 modular homes have been built in the UK – representing one in 60 of every new home constructed.

The UK government has set a target of 300,000 new homes to be built per year by 2025, and while official figures show that around 204,500 were built in the 12 months to March 2022, it is clear that there is still a significant shortfall. 

Modular housing has the potential to address this shortage by providing a faster and more affordable method to build homes at scale.

Modular Housing UK Graph

Furthermore, modular homes can offer significant benefits in terms of energy efficiency. This category of home can fall into the top energy performance bracket and potentially result in savings of around £800 per year on energy bills for the average household.

This, combined with the speed and affordability of modular housing, makes it increasingly suited to the current housing demands in the UK.

Modular buildings have a lower carbon footprint than traditional methods of construction because the homes are built off-site, which can allow for greater control over the construction process and reduced waste. 

Additionally, there are fewer deliveries to the site, subsequently cutting emissions, and residents living nearby are also less affected by any noise, pollution or disruption.

Marc Vlessing, the founder of Pocket Living, a London-based affordable housing company, says the eco credentials associated with this method of construction are likely to be a key driver of demand.

As residents understand this more, I believe they will press local authorities to ensure more homes in their neighbourhood are delivered in this way.

Headquartered in the North of England, modular housebuilder, CoreHaus, is one company leading the way in this industry. With a focus on sustainability and high-quality design, CoreHaus is contributing to the Government's targets for the levels of modular homes to be built over coming years. 

As modular housing continues to gain traction in the UK, companies like CoreHaus are poised to benefit from this growing industry and provide much-needed relief for the country's housing crisis.

Ultimately, modular housing can be an attractive investment opportunity for those looking to invest in the UK property market. The fast construction times and lower costs associated with modular housing make it an appealing option for developers, and the growing demand for affordable housing in the UK means that there is significant potential for growth in the industry. 

Importantly, as the industry continues to expand, it has the potential to provide much-needed relief for the millions of people in the UK who are living in unaffordable, insecure, or inadequate homes.
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Growth Capital Ventures (GCV) is backed by funds managed by Maven Capital Partners, one of the UK’s leading private equity and alternative asset managers.