Sunday 11 November 2018 1:25 pm

Break the chain: Spotify backers fund estate agent Nested

An estate agent that helps homeowners buy their next property chain-free has received £120m from the backers of Spotify, Betfair and Revolut.

Nested gives homeowners a cash advance of up to 94 per cent of their property’s value, allowing them to buy a new home before completing a sale. The rest of the value is paid when the old property sells.

The company has secured £20m in equity finance from venture capital firms Northzone, which backs streaming service Spotify, and Balderton Capital, which has invested in Betfair, Revolut and Citymapper. An additional £100m of debt finance came from an institutional investor.

Nested was launched in 2016 by entrepreneurs Phil Cowan, James Turford and Matt Robinson, co-founder of payment business GoCardless. The company has helped over 400 people move home without an onward chain and says its properties take an average of 141 days to sell.

The investment comes amid a slowing market as Brexit uncertainty takes hold. Residential property sales fell almost 12 per cent over the last year, according to figures from HMRC, while the Halifax price index showed UK house price growth slowed to its lowest level in five years last month.

Chief executive Matt Robinson said: “We’re excited to receive the backing from some of Europe’s top venture capital firms who share our vision for fixing the age-old problem of buying and selling homes.

"We are building an incredible team to offer an unassailable service with the most progressive technology in the property industry. This investment will allow us to continue solving the problems that prevent people from moving home with ease.”