Nested continues funding roll
Innovative chain-busting estate agency Nested is on a role with another funding round, raising £36m to bring total investment since its January launch to £47m. In a sector in which online agencies are still launching with the promise of disruption Nested is at least innovative. And timely. It’s a kind of estate agency-bridging loan provider hybrid, aimed at freeing up chains in a sticky market. So, if selling your old home is the only thing stopping you buying your new one, Nested guarantees around 97% of an agreed valuation straight away, while working as conventional agents to close the remaining 3%. If it fails to do so, it compensates from its fee (typically 3%). It’s a complex model, sensitive to changing legislation and hidden costs (for instance, it finds itself liable for a vendor/buyer’s additional stamp duty obligations while they technically own two properties), but presumably investors see the potential in an uncertain London market. (Nested currently limits itself to a London operation, with a 10% market share target in 2018.) Read more here.