Harewood Associates

They are not offering deposit savings rates. No FSCS protection. No FSA regulation.

If they were FSA regulated then the website would be full of breaches. As they are not FSA regulated, they can more or less say what they like.

100% of your capital is at risk. This is an unregulated invesmtent. To even compare it with cash savings is disingenuous

The profit comes from the increased value of the renovated property. I don't believe they promote renting per se.

So it really is a speculative commercial arrangement.

I've seen this model work but as with all property: location, location, location. And in the cases I know the investor can do most of the renovation so costs are minimised

The model can certainly work and work well for builders, those with good DIY skills and getting the right property and location. However, that is very different from savings accounts which is how they position it. Every now and then, even the most successful developer will make a mistake and lose money. So, who suffers the loss in that case? Are you funds pooled with others or is each property in isolation? With all the experts they say they have and use, are they charged explicitly when used or a pooled rate? They also pay commissions to introducers as well. How many people are taking a cut of this? It keeps throwing up questions which are not answered on the website.

This is a million miles away from what the OP called high interest monthly saver rates. It is a commercial arrangement with capital at risk.

The website says guaranteed returns are available which offer a safe investment and is an ideal alternative to a high interest savings account. That doesnt sound like property development. It goes on to say:
Investments are secured on Harewood residential properties. Total borrowings on any property will never exceed 70% of the property value. The valuation of the property is undertaken by an RICS qualified valuer based on an open market valuation. You can be assured that your investment is safe and secure. Interest is paid into your account monthly Whether you have a busy career or enjoying retirement, you can carry on with life knowing that your savings are producing a healthy income, month after month. Again that doesnt sound like property development. Interest comes from income generated. What are they doing that is generating over 20% returns (as they have to earn their cut) that is so safe that they can call it guaranteed?

It looks like they are using investors money to buy properties rather than borrow from a bank. They are then using the gains on the development side to provide a 20% income return. So, the development needs at least 20% gains net of costs, tax etc and they need to keep doing it to keep paying the 20% a year. If they stop doing it the whole thing collapses (a 40% capital gain can pay two years at 20%. What happens if there is no replacement gains. They need to pay the 20% a year). Plus, whilst they borrow only upto 70% on a property, they can easily end up with far greater liabilities elsewhere. The creditors (or savers if we go by their marketing) giving them money for example.