The buyer can purchase as many as they want, with a minimum value of £10,000 or one per cent of the property price whichever is higher, and investors buy the rest. The cost of stamp duty is divided proportionately between the two.
The buyer then pays market rent to investors based on number of bricks they own.
The firm said that the approach would give investors regular rental income and potential capital gains but without removing housing stock from buyers.
It also minimises management hassles as each home has a property manager, buildings insurance, safety checks and an annual repairs budget.
Those investing with Allbricks do not need a mortgage or loan and have a chance to start a property portfolio from £2,000.
The company added that investing alongside committed buyers would mean properties were well maintained and it did not require landlord stresses such as tenant searches, void period and cleaning fees.
Allbricks said that the platform would allow current landlords a “simple route” to add to their portfolio without worrying about the “direct impact of mortgage interest rate rises”.
It added that it opened up different areas of the residential market to institutional investors, who are typically focused on the new-build market.
Allbricks said the platform was ideal for investors who want to invest in residential property but did not want the maintenance responsibilities, are priced out of the buy-to-let market, or want flexibility in property investment in different properties or areas.
Allbricks: ‘A unitising alternative’
Allbricks CEO, Shahram Shaida, said: “Residential property has traditionally been one of the safest long-term investments, but tightening regulations and interest rate increases have impacted the profitability of buy-to-let portfolios.
“Allbricks is here to offer an alternative, unitising investment in UK residential property and using the fast-growing crowdfunding market to democratise home ownership and property investment for the first time.”
He continued: “We enable investors to diversify by investing in multiple properties rather than one buy-to-let. And because each home buyer co-owns the property with the investors, they’re equally invested in keeping it in good shape.
“We offer the potential for year-on-year growth in line with the residential property market and the opportunity for regular passive income. For the socially conscious investor, there is a chance to profit from good by helping people get the home of their dreams, stay in their communities and build a future for their families.”
Mark Witherspoon, board advisor to Allbricks, said: “Allbricks represents a new property investment concept that provides an opportunity for regular monthly income, helps diversify across multiple properties and UK locations, and sidesteps the direct risk from rising mortgage rates, all while changing the traditional dynamic between homeowners and investors.
“It allows investors to not only benefit from the potential rise in property values, but also to avoid most of the headaches usually involved with property management.”
A spokesperson said: “Allbricks is absolutely looking to engage with mortgage brokers. Many of their clients are having real difficulties getting their mortgages approved, so we can help them offer an alternative route to home ownership.
“If brokers are speaking to clients who are now having to wait to save more for a deposit, or are thinking twice because of interest rate worries, then we offer something new. And it’s a route than can work for people who may not have traditional nine to five jobs too, like freelancers or people who are self-employed, which means more potential buyers overall.”
