The high-profit property crowdfunding site Property Partner has laid off 13 of its employees - equivalent to around 29 per cent of its headcount - thanks to what its founder calls “a growing theme of caution.”
Insider Media is reporting that Property Partner’s headcount is now down from 44 to 31 in what the firm’s founder describes as “a proactive move to improve efficiency and streamline the company’s cost base.”
“Across the global startup community there has been a growing theme of caution and more active management of costs, beginning late 2015” says the site’s chief executive and founder Dan Gandesha.
He set up the company early last year: it offers ‘slices’ of buy to let investments for as little as £50, with investors getting rent and any eventual capital appreciation in proportion to their financial stake.
Earlier this year it admitted that the UK buy to let market was becoming more challenging, chiefly because of changes to mortgage interest tax relief and other measures.
Gandesha’s statement to Insider Media includes these words: “We will shortly be launching a globally innovative ‘bidding-engine’ feature that takes us yet closer to our vision of a Global Stock Exchange for Residential Property.
“Our balance sheet remains strong, our team, Board and shareholders committed, and we are all as passionate and confident about the future as ever.”
It says around 8,000 people have invested over £34m on the platform, buying up 234 properties. In March of this year the firm raised £15.9m in equity and debt.
Gandesha says the redundancy decision was taken “before and irrespective of the referendum result.”