Zoopla-backed proptech firm Bricklane has launched its first investment opportunity in London.

The crowdfunding platform, which allows investors to get together to invest tax-free in homes using online property ISAs, has purchased a one-bedroom flat in Clapham North worth £400,000.

Investors can contribute a minimum of £100 for a net yield of 1.6% after fees.

Other London properties are due to be added to the fund, which will push up the returns, with the aim of returns of 9.2%.

There is currently a half price 1% platform fee on the fund.

Investors are paid from the rent on the properties in the fund as well as any house price growth once they sell their share.

This of course assumes the value grows and that they can find a buyer.

Bricklane also runs a Regional Capitals Fund that currently holds 16 properties in cities such as Birmingham, Leeds and Manchester. It currently offers annual returns of 8.9%.

Zoopla Property Group (ZPG) announced its investment in Zoopla in September 2016.

In addition to investing in Bricklane to help support its growth, ZPG will promote the property ISA on the Zoopla website under an exclusive partnership agreement and as part of Zoopla’s new ‘Invest’ channel due to launch later this month.

Zoopla announces investment in Property ISA proptech startup