Invest

Update (July 2025): we don’t currently need loanstock, but let us know if you might be able to help with future loanstock, or if you want suggestions for other co-ops that need investment.

Loanstock FAQ

What is Loanstock?
‘Loanstock’ is the term we use for money invested in a co-op by external parties. There are other methods for such parties to invest, but one of the advantages of loanstock is that it cuts out intermediary services and their cost, so the full amount goes directly to the co-op.

The system is best described as a type of ‘fixed-term investment’ – this means people lend money to the co-op for a fixed period of time. The co-op pays interest to the loanstock holder, usually by adding to the balance owed, although you can opt to receive interest payments annually instead. At the end of the set period, the investor is paid back in full, including any interest owed.

Why should I invest my money?
By supporting housing co-operatives, you are using money to change the housing market, to support and sustain more affordable and democratic housing.

What will my money be used for?
Although loanstock is usually for a fixed period of time, an investor can ask to be repaid early, and we will do our best to help with that if we can.

At the moment, one of our original loanstock investors has asked to be repaid early because their circumstances have changed unexpectedly.

So we are looking for replacement loanstock to allow us to help out someone who helped us get set up – by investing, you’ll be contributing towards a culture of solidarity and mutual aid.

We are currently seeking around £3000 in loanstock, will consider any amount of £500 or more, for periods in the region of 2-6 years*, at 0-3% interest.

(* Note that a previous version of the article mistakenly said that we needed the loanstock for 5-10 years. We have now calculated that we could actually release the money sooner, so this has been updated).

Do I get interest?
Yes (if you want). On the loanstock application form, you can choose how much interest you would like to receive (0-3%).

How and when will interest be paid?
Interest will be paid yearly, or at the end of the term of the loan, i.e. when it matures.

Why not go to a bank for the loan?
One of the advantages of loanstock is that it cuts out intermediary services and their cost, so the full amount goes directly to the co-op, as mentioned above. Furthermore, we would prefer to pay interest to our investors who support what we are doing and want us to succeed.

If you do invest in us, you are helping to create and sustain long-term, affordable and secure housing which won’t be sold off for private gain. Unlike banks and other forms of investment, we are 100% transparent with your money, and you will be kept up-to-date with how your money is being used.

What about tax?
The co-op does not deduct tax from the interest – it is the investor’s responsibility to declare the interest in a tax return. If anyone receives more than £250 interest in a year, the co-op is legally obliged to make a special declaration to the local tax office. The loanstock is an unsecured investment.

Can I decide to withdraw my investment whenever I want?
Investments will generally be returned with interest at the end of the term you initially choose. However, as the current situation illustrates, we will consider all requests for early withdrawal of an investment, and will do our best to help if we can. However, we do need to be clear that there is no guarantee that we will be able to fulfill these requests.

Why is the loanstock unsecured? Does that mean I won’t get the money back?
In short, no it doesn’t mean that. ‘Unsecured’ means that the co-operative does not offer investors any collateral against the loan. However, in the unlikely event that things do go wrong and the co-operative fails or defaults, it is very likely that the house would be sold in order to repay investors. This is an extremely rare occurrence among co-operatives. As a model, they have an excellent track record.

It’s worth noting that, at the time of writing, our housing co-op has already been housed for over 3 years so you’d be investing in an established business that already has a track record. Please feel free to ask us for more details of our financial history and future projections if you’d like.

I’m not sure if I want to invest, can I make a donation instead?
Yes. If you’re not interested in investing for whatever reason, you can also make a donation. Please get in touch via e-mail if this interests you.

I’d like to invest, what do I do now?
Great! Get in touch and we can discuss the details, and send you an application form.

How can I get more info?
Drop us an e-mail and we’d be happy to answer any questions.